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ACGL vs. TKOMY: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of Arch Capital Group (ACGL - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Arch Capital Group and Tokio Marine Holdings Inc. are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that ACGL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ACGL currently has a forward P/E ratio of 11.43, while TKOMY has a forward P/E of 28.32. We also note that ACGL has a PEG ratio of 1.14. 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 9.50.
Another notable valuation metric for ACGL is its P/B ratio of 1.55. 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 3.03.
These are just a few of the metrics contributing to ACGL's Value grade of A and TKOMY's Value grade of D.
ACGL has seen stronger estimate revision activity and sports more attractive valuation metrics than TKOMY, so it seems like value investors will conclude that ACGL is the superior option right now.
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ACGL vs. TKOMY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of Arch Capital Group (ACGL - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Arch Capital Group and Tokio Marine Holdings Inc. are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that ACGL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ACGL currently has a forward P/E ratio of 11.43, while TKOMY has a forward P/E of 28.32. We also note that ACGL has a PEG ratio of 1.14. 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 9.50.
Another notable valuation metric for ACGL is its P/B ratio of 1.55. 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 3.03.
These are just a few of the metrics contributing to ACGL's Value grade of A and TKOMY's Value grade of D.
ACGL has seen stronger estimate revision activity and sports more attractive valuation metrics than TKOMY, so it seems like value investors will conclude that ACGL is the superior option right now.