We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
WRB or TKOMY: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
W.R. Berkley has a Zacks Rank of #1 (Strong Buy), while Tokio Marine Holdings Inc. has a Zacks Rank of #5 (Strong Sell) right now. Investors should feel comfortable knowing that WRB likely has seen a stronger improvement to its earnings outlook than TKOMY has recently. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
WRB currently has a forward P/E ratio of 14.81, while TKOMY has a forward P/E of 17.42. We also note that WRB has a PEG ratio of 1.65. 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 5.85.
Another notable valuation metric for WRB is its P/B ratio of 2.65. 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 5.22.
These are just a few of the metrics contributing to WRB's Value grade of B and TKOMY's Value grade of F.
WRB 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 WRB is likely the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
WRB or TKOMY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
W.R. Berkley has a Zacks Rank of #1 (Strong Buy), while Tokio Marine Holdings Inc. has a Zacks Rank of #5 (Strong Sell) right now. Investors should feel comfortable knowing that WRB likely has seen a stronger improvement to its earnings outlook than TKOMY has recently. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
WRB currently has a forward P/E ratio of 14.81, while TKOMY has a forward P/E of 17.42. We also note that WRB has a PEG ratio of 1.65. 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 5.85.
Another notable valuation metric for WRB is its P/B ratio of 2.65. 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 5.22.
These are just a few of the metrics contributing to WRB's Value grade of B and TKOMY's Value grade of F.
WRB 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 WRB is likely the superior value option right now.