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CB or TKOMY: Which Is the Better Value Stock Right Now?

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Investors interested in Insurance - Property and Casualty stocks are likely familiar with Chubb (CB - 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.

Currently, Chubb has a Zacks Rank of #2 (Buy), while Tokio Marine Holdings Inc. has a Zacks Rank of #3 (Hold). This means that CB'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 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.

CB currently has a forward P/E ratio of 11.43, while TKOMY has a forward P/E of 14.94. We also note that CB has a PEG ratio of 1.14. 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 5.01.

Another notable valuation metric for CB is its P/B ratio of 1.63. 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 4.86.

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

CB sticks out from TKOMY in both our Zacks Rank and Style Scores models, so value investors will likely feel that CB is the better option right now.


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