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WRB 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 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, W.R. Berkley has a Zacks Rank of #2 (Buy), while Tokio Marine Holdings Inc. has a Zacks Rank of #4 (Sell). 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
WRB currently has a forward P/E ratio of 14.19, while TKOMY has a forward P/E of 15.61. We also note that WRB has a PEG ratio of 1.58. 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 5.24.
Another notable valuation metric for WRB is its P/B ratio of 2.54. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, TKOMY has a P/B of 4.78.
These metrics, and several others, help WRB earn a Value grade of A, while TKOMY has been given a Value grade of F.
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 interested in Insurance - Property and Casualty stocks are likely familiar with 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, W.R. Berkley has a Zacks Rank of #2 (Buy), while Tokio Marine Holdings Inc. has a Zacks Rank of #4 (Sell). 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
WRB currently has a forward P/E ratio of 14.19, while TKOMY has a forward P/E of 15.61. We also note that WRB has a PEG ratio of 1.58. 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 5.24.
Another notable valuation metric for WRB is its P/B ratio of 2.54. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, TKOMY has a P/B of 4.78.
These metrics, and several others, help WRB earn a Value grade of A, while TKOMY has been given a Value grade of F.
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.