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.

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.

Right now, M?nchener R?ckversicherungs-Gesellschaft is sporting a Zacks Rank of #1 (Strong Buy), while Goosehead Insurance has a Zacks Rank of #4 (Sell). This means that MURGY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

MURGY currently has a forward P/E ratio of 11.92, while GSHD has a forward P/E of 65.08. We also note that MURGY has a PEG ratio of 0.98. 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 4.92.

Another notable valuation metric for MURGY is its P/B ratio of 2.34. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, GSHD has a P/B of 117.02.

These are just a few of the metrics contributing to MURGY's Value grade of B and GSHD's Value grade of F.

MURGY 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 MURGY is likely 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

This article originally published on Zacks Investment Research (zacks.com).

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