Investors with an interest in Insurance - Multi line stocks have likely encountered both Axa Sa (AXAHY) and Goosehead Insurance (GSHD). 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.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Axa Sa is sporting a Zacks Rank of #2 (Buy), while Goosehead Insurance has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AXAHY has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

AXAHY currently has a forward P/E ratio of 10.03, while GSHD has a forward P/E of 57.40. We also note that AXAHY has a PEG ratio of 1.68. 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 4.06.

Another notable valuation metric for AXAHY is its P/B ratio of 1.89. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, GSHD has a P/B of 102.15.

These metrics, and several others, help AXAHY earn a Value grade of B, while GSHD has been given a Value grade of F.

AXAHY sticks out from GSHD in both our Zacks Rank and Style Scores models, so value investors will likely feel that AXAHY is the better option right now.

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

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