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

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Investors with an interest in Insurance - Property and Casualty stocks have likely encountered both W.R. Berkley (WRB - Free Report) and Tokio Marine Holdings Inc. (TKOMY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, W.R. Berkley is sporting a Zacks Rank of #1 (Strong Buy), while Tokio Marine Holdings Inc. has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that WRB likely has seen a stronger improvement to its earnings outlook than TKOMY has recently. But this is just one piece of the puzzle 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 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.

WRB currently has a forward P/E ratio of 14.81, while TKOMY has a forward P/E of 17.06. We also note that WRB has a PEG ratio of 1.65. 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. TKOMY currently has a PEG ratio of 5.72.

Another notable valuation metric for WRB is its P/B ratio of 2.65. 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, TKOMY has a P/B of 5.22.

These are just a few of the metrics contributing to WRB's Value grade of B and TKOMY's Value grade of F.

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


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

Tokio Marine Holdings Inc. (TKOMY) - free report >>

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