Investors with an interest in Insurance - Property and Casualty stocks have likely encountered both Tokio Marine Holdings Inc. (TKOMY) and W.R. Berkley (WRB). 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Tokio Marine Holdings Inc. and W.R. Berkley are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. 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 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
TKOMY currently has a forward P/E ratio of 10.64, while WRB has a forward P/E of 17.43. We also note that TKOMY has a PEG ratio of 0.71. 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. WRB currently has a PEG ratio of 2.54.
Another notable valuation metric for TKOMY is its P/B ratio of 2.47. 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, WRB has a P/B of 3.15.
These are just a few of the metrics contributing to TKOMY's Value grade of B and WRB's Value grade of C.
TKOMY sticks out from WRB in both our Zacks Rank and Style Scores models, so value investors will likely feel that TKOMY is the better option right now.
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Tokio Marine Holdings Inc. (TKOMY): Free Stock Analysis Report W.R. Berkley Corporation (WRB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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