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

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Investors interested in Insurance - Property and Casualty stocks are likely familiar with Travelers (TRV - Free Report) and W.R. Berkley (WRB - 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, both Travelers and W.R. Berkley are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.

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.

TRV currently has a forward P/E ratio of 12.62, while WRB has a forward P/E of 18.05. We also note that TRV has a PEG ratio of 1.98. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WRB currently has a PEG ratio of 2.01.

Another notable valuation metric for TRV is its P/B ratio of 1.27. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, WRB has a P/B of 1.95.

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

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


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The Travelers Companies, Inc. (TRV) - free report >>

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

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