ZURVY vs. GSHD: Which Stock Is the Better Value Option?
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Investors with an interest in Insurance - Multi line stocks have likely encountered both Zurich Insurance Group Ltd. (ZURVY) and Goosehead Insurance (GSHD). But which of these two companies is the best option for those looking for undervalued stocks? 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.
Currently, Zurich Insurance Group Ltd. has a Zacks Rank of #2 (Buy), while Goosehead Insurance has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ZURVY 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 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.
ZURVY currently has a forward P/E ratio of 12.80, while GSHD has a forward P/E of 38.85. We also note that ZURVY has a PEG ratio of 0.80. 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. GSHD currently has a PEG ratio of 1.76.
Another notable valuation metric for ZURVY is its P/B ratio of 2.95. 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 77.69.
These metrics, and several others, help ZURVY earn a Value grade of B, while GSHD has been given a Value grade of F.
ZURVY sticks out from GSHD in both our Zacks Rank and Style Scores models, so value investors will likely feel that ZURVY is the better option right now.
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Zurich Insurance Group Ltd. (ZURVY) : Free Stock Analysis Report
Goosehead Insurance (GSHD) : Free Stock Analysis Report