Investors interested in Insurance - Property and Casualty stocks are likely familiar with Tokio Marine Holdings Inc. (TKOMY) and Kinsale Capital Group, Inc. (KNSL). 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 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, Tokio Marine Holdings Inc. is sporting a Zacks Rank of #1 (Strong Buy), while Kinsale Capital Group, Inc. 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 TKOMY has an improving earnings outlook. But this is only part of the picture for value investors.
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 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.
TKOMY currently has a forward P/E ratio of 9.63, while KNSL has a forward P/E of 18.86. We also note that TKOMY has a PEG ratio of 0.64. 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. KNSL currently has a PEG ratio of 1.36.
Another notable valuation metric for TKOMY is its P/B ratio of 2.08. 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, KNSL has a P/B of 4.82.
Based on these metrics and many more, TKOMY holds a Value grade of A, while KNSL has a Value grade of C.
TKOMY has seen stronger estimate revision activity and sports more attractive valuation metrics than KNSL, so it seems like value investors will conclude that TKOMY is the superior option right now.
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Tokio Marine Holdings Inc. (TKOMY): Free Stock Analysis Report Kinsale Capital Group, Inc. (KNSL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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