Yahoo Finance MURGY vs. GSHD: Which Stock Is the Better Value Option?
Investors with an interest in Insurance - Multi line stocks have likely encountered both M?nchener R?ckversicherungs-Gesellschaft (MURGY) and Goosehead Insurance (GSHD). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
M?nchener R?ckversicherungs-Gesellschaft has a Zacks Rank of #1 (Strong Buy), while Goosehead Insurance 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 MURGY has an improving earnings outlook. However, value investors will care about much more than just this.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
MURGY currently has a forward P/E ratio of 9.38, while GSHD has a forward P/E of 43.92. We also note that MURGY has a PEG ratio of 0.66. 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. GSHD currently has a PEG ratio of 1.66.
Another notable valuation metric for MURGY is its P/B ratio of 2.28. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, GSHD has a P/B of 87.63.
Based on these metrics and many more, MURGY holds a Value grade of B, while GSHD has a Value grade of F.
MURGY stands above GSHD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MURGY is the superior value option right now.
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M?nchener R?ckversicherungs-Gesellschaft (MURGY) : Free Stock Analysis Report
Goosehead Insurance (GSHD) : Free Stock Analysis Report
