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CNA vs. TKOMY: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Insurance - Property and Casualty sector might want to consider either CNA Financial (CNA - Free Report) or 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.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
CNA Financial has a Zacks Rank of #2 (Buy), while Tokio Marine Holdings Inc. has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CNA has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
CNA currently has a forward P/E ratio of 11.46, while TKOMY has a forward P/E of 47.62. We also note that CNA has a PEG ratio of 2.29. 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 15.98.
Another notable valuation metric for CNA is its P/B ratio of 1.41. 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 4.88.
These metrics, and several others, help CNA earn a Value grade of A, while TKOMY has been given a Value grade of D.
CNA is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CNA is likely the superior value option right now.
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CNA vs. TKOMY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Insurance - Property and Casualty sector might want to consider either CNA Financial (CNA - Free Report) or 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.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
CNA Financial has a Zacks Rank of #2 (Buy), while Tokio Marine Holdings Inc. has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CNA has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
CNA currently has a forward P/E ratio of 11.46, while TKOMY has a forward P/E of 47.62. We also note that CNA has a PEG ratio of 2.29. 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 15.98.
Another notable valuation metric for CNA is its P/B ratio of 1.41. 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 4.88.
These metrics, and several others, help CNA earn a Value grade of A, while TKOMY has been given a Value grade of D.
CNA is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CNA is likely the superior value option right now.