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WRB or TKOMY: Which Is the Better Value Stock Right Now?
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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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
W.R. Berkley and Tokio Marine Holdings Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that WRB is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
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.
WRB currently has a forward P/E ratio of 17.45, while TKOMY has a forward P/E of 40.73. We also note that WRB has a PEG ratio of 1.94. 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 13.67.
Another notable valuation metric for WRB is its P/B ratio of 3.04. 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 3.78.
These metrics, and several others, help WRB earn a Value grade of B, while TKOMY has been given a Value grade of C.
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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WRB or TKOMY: Which Is the Better Value Stock Right Now?
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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
W.R. Berkley and Tokio Marine Holdings Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that WRB is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
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.
WRB currently has a forward P/E ratio of 17.45, while TKOMY has a forward P/E of 40.73. We also note that WRB has a PEG ratio of 1.94. 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 13.67.
Another notable valuation metric for WRB is its P/B ratio of 3.04. 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 3.78.
These metrics, and several others, help WRB earn a Value grade of B, while TKOMY has been given a Value grade of C.
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.