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AXS 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 Axis Capital (AXS - Free Report) and Tokio Marine Holdings Inc. (TKOMY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, both Axis Capital and Tokio Marine Holdings Inc. are sporting a Zacks Rank of # 1 (Strong Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.

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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

AXS currently has a forward P/E ratio of 8.21, while TKOMY has a forward P/E of 14.27. We also note that AXS has a PEG ratio of 1.64. 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 4.79.

Another notable valuation metric for AXS is its P/B ratio of 1.38. 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 4.87.

These are just a few of the metrics contributing to AXS's Value grade of A and TKOMY's Value grade of F.

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


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