NNGRY vs. BRP: Which Stock Is the Better Value Option?
Investors looking for stocks in the Insurance - Life Insurance sector might want to consider either NN Group NV Unsponsored ADR (NNGRY) or BRP Group (BRP). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
NN Group NV Unsponsored ADR and BRP Group are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that NNGRY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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 5.85, while BRP has a forward P/E of 19.62. We also note that NNGRY has a PEG ratio of 0.46. 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. BRP currently has a PEG ratio of 0.71.
Another notable valuation metric for NNGRY is its P/B ratio of 0.50. 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 2.47.
These are just a few of the metrics contributing to NNGRY's Value grade of A and BRP's Value grade of D.
NNGRY stands above BRP thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NNGRY is 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
