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MURGY vs. ZURVY: Which Stock Is the Better Value Option?

Investors interested in stocks from the Insurance - Multi line sector have probably already heard of M?nchener R?ckversicherungs-Gesellschaft (MURGY) and Zurich Insurance Group Ltd. (ZURVY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 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 and Zurich Insurance Group Ltd. are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that MURGY likely has seen a stronger improvement to its earnings outlook than ZURVY has recently. 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.

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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 10.41, while ZURVY has a forward P/E of 12.04. We also note that MURGY has a PEG ratio of 0.57. 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. ZURVY currently has a PEG ratio of 4.39.

Another notable valuation metric for MURGY is its P/B ratio of 2. 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, ZURVY has a P/B of 2.51.

These metrics, and several others, help MURGY earn a Value grade of A, while ZURVY has been given a Value grade of C.

MURGY stands above ZURVY 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

Zurich Insurance Group Ltd. (ZURVY) : Free Stock Analysis Report

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Zacks Investment Research