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CB vs. TKOMY: Which Stock Should Value Investors Buy 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 companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Chubb has a Zacks Rank of #2 (Buy), while Tokio Marine Holdings Inc. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CB 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 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 11.04, while TKOMY has a forward P/E of 17.56. We also note that CB has a PEG ratio of 1.10. 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 5.89.

Another notable valuation metric for CB is its P/B ratio of 1.62. 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 5.26.

Based on these metrics and many more, CB holds a Value grade of B, while TKOMY has a Value grade of F.

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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