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WRB vs. TKOMY: Which Stock Is the Better Value Option?

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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 companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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.

W.R. Berkley has a Zacks Rank of #2 (Buy), while Tokio Marine Holdings Inc. has a Zacks Rank of #3 (Hold) 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 factor that value investors are interested in.

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 14.72, while TKOMY has a forward P/E of 17.07. We also note that WRB has a PEG ratio of 1.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TKOMY currently has a PEG ratio of 5.73.

Another notable valuation metric for WRB is its P/B ratio of 2.63. 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 5.12.

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

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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W.R. Berkley Corporation (WRB) - free report >>

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