EG vs. MURGY: Which Stock Is the Better Value Option?
Investors with an interest in Insurance - Multi line stocks have likely encountered both Everest Group (EG) and M?nchener R?ckversicherungs-Gesellschaft (MURGY). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Everest Group has a Zacks Rank of #2 (Buy), while M?nchener R?ckversicherungs-Gesellschaft has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that EG has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
EG currently has a forward P/E ratio of 8.22, while MURGY has a forward P/E of 10.99. We also note that EG has a PEG ratio of 0.27. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MURGY currently has a PEG ratio of 2.53.
Another notable valuation metric for EG is its P/B ratio of 1.38. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, MURGY has a P/B of 2.26.
These metrics, and several others, help EG earn a Value grade of B, while MURGY has been given a Value grade of C.
EG has seen stronger estimate revision activity and sports more attractive valuation metrics than MURGY, so it seems like value investors will conclude that EG is the superior option right now.
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Everest Group, Ltd. (EG) : Free Stock Analysis Report
M?nchener R?ckversicherungs-Gesellschaft (MURGY) : Free Stock Analysis Report
