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CB 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 Chubb (CB - Free Report) or 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.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Chubb has a Zacks Rank of #2 (Buy), while Tokio Marine Holdings Inc. has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CB has an improving earnings 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.

CB currently has a forward P/E ratio of 11.18, while TKOMY has a forward P/E of 14.38. We also note that CB has a PEG ratio of 1.12. 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 4.83.

Another notable valuation metric for CB is its P/B ratio of 1.58. 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 5.04.

These metrics, and several others, help CB earn a Value grade of B, while TKOMY has been given a Value grade of D.

CB stands above TKOMY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CB is the superior value option right now.


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