NNGRY or BRP: Which Is the Better Value Stock Right Now?
Investors with an interest in Insurance - Life Insurance stocks have likely encountered both NN Group NV Unsponsored ADR (NNGRY) and BRP Group (BRP). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, NN Group NV Unsponsored ADR has a Zacks Rank of #1 (Strong Buy), while BRP Group has a Zacks Rank of #5 (Strong Sell). This means that NNGRY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
NNGRY currently has a forward P/E ratio of 5.96, while BRP has a forward P/E of 18.68. We also note that NNGRY has a PEG ratio of 0.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BRP currently has a PEG ratio of 0.67.
Another notable valuation metric for NNGRY is its P/B ratio of 0.51. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, BRP has a P/B of 2.34.
Based on these metrics and many more, NNGRY holds a Value grade of A, while BRP has a Value grade of F.
NNGRY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that NNGRY is likely the superior value option right now.
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NN Group NV Unsponsored ADR (NNGRY) : Free Stock Analysis Report
BRP Group, Inc. (BRP) : Free Stock Analysis Report
