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

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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, both Allianz SE and M?nchener R?ckversicherungs-Gesellschaft are sporting a Zacks Rank of # 1 (Strong Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

ALIZY currently has a forward P/E ratio of 12.28, while MURGY has a forward P/E of 12.30. We also note that ALIZY has a PEG ratio of 1.19. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MURGY currently has a PEG ratio of 1.46.

Another notable valuation metric for ALIZY is its P/B ratio of 2.43. 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, MURGY has a P/B of 2.72.

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

Both ALIZY and MURGY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ALIZY is the superior value option right now.

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

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