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

WRB TKOMY

Investors interested in Insurance - Property and Casualty stocks are likely familiar with W.R. Berkley (WRB - Free Report) and Tokio Marine Holdings Inc. (TKOMY - Free Report) . 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, W.R. Berkley has a Zacks Rank of #1 (Strong Buy), while Tokio Marine Holdings 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 WRB has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

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.

WRB currently has a forward P/E ratio of 17.27, while TKOMY has a forward P/E of 44.67. We also note that WRB has a PEG ratio of 1.92. 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. TKOMY currently has a PEG ratio of 14.99.

Another notable valuation metric for WRB is its P/B ratio of 3.09. 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, TKOMY has a P/B of 4.15.

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

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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