WRB or TKOMY: Which Is the Better Value Stock Right Now?

WRB TKOMY

Investors looking for stocks in the Insurance - Property and Casualty sector might want to consider either W.R. Berkley (WRB - Free Report) or 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

W.R. Berkley and Tokio Marine Holdings Inc. are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that WRB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

WRB currently has a forward P/E ratio of 14.15, while TKOMY has a forward P/E of 15.18. We also note that WRB has a PEG ratio of 1.57. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TKOMY currently has a PEG ratio of 5.09.

Another notable valuation metric for WRB is its P/B ratio of 2.50. 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 4.65.

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

WRB stands above TKOMY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that WRB is the superior value option right now.

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