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

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Investors interested in Insurance - Property and Casualty stocks are likely familiar with Tokio Marine Holdings Inc. (TKOMY - Free Report) and W.R. Berkley (WRB - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Tokio Marine Holdings Inc. has a Zacks Rank of #2 (Buy), while W.R. Berkley has a Zacks Rank of #3 (Hold). This means that TKOMY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.

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.

TKOMY currently has a forward P/E ratio of 10.47, while WRB has a forward P/E of 17.11. We also note that TKOMY has a PEG ratio of 0.70. 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. WRB currently has a PEG ratio of 2.50.

Another notable valuation metric for TKOMY is its P/B ratio of 2.42. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WRB has a P/B of 3.07.

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

TKOMY has seen stronger estimate revision activity and sports more attractive valuation metrics than WRB, so it seems like value investors will conclude that TKOMY is the superior option right now.


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

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