Back to top

Image: Bigstock

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

Read MoreHide Full Article

Investors interested in Insurance - Property and Casualty stocks are likely familiar with Tokio Marine Holdings Inc. (TKOMY - Free Report) and Kinsale Capital Group, Inc. (KNSL - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 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.

Currently, Tokio Marine Holdings Inc. has a Zacks Rank of #2 (Buy), while Kinsale Capital Group, Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TKOMY likely has seen a stronger improvement to its earnings outlook than KNSL has recently. But this is just one factor that value investors are interested in.

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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

TKOMY currently has a forward P/E ratio of 10.27, while KNSL has a forward P/E of 27.30. We also note that TKOMY has a PEG ratio of 0.69. 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. KNSL currently has a PEG ratio of 1.79.

Another notable valuation metric for TKOMY is its P/B ratio of 2.27. 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, KNSL has a P/B of 7.14.

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

TKOMY sticks out from KNSL in both our Zacks Rank and Style Scores models, so value investors will likely feel that TKOMY is the better option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Tokio Marine Holdings Inc. (TKOMY) - free report >>

Kinsale Capital Group, Inc. (KNSL) - free report >>

Published in