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TKOMY vs. WRB: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Insurance - Property and Casualty sector might want to consider either Tokio Marine Holdings Inc. (TKOMY - Free Report) or W.R. Berkley (WRB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.

Both Tokio Marine Holdings Inc. and W.R. Berkley have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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 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 10.38, while WRB has a forward P/E of 19.98. We also note that TKOMY has a PEG ratio of 1.59. 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 2.22.

Another notable valuation metric for TKOMY is its P/B ratio of 1.01. 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, WRB has a P/B of 2.06.

Based on these metrics and many more, TKOMY holds a Value grade of A, while WRB has a Value grade of C.

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


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W.R. Berkley Corporation (WRB) - free report >>

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