We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
ALL vs. TKOMY: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of Allstate (ALL - Free Report) and Tokio Marine Holdings Inc. (TKOMY - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Allstate is sporting a Zacks Rank of #1 (Strong Buy), while Tokio Marine Holdings Inc. has a Zacks Rank of #5 (Strong Sell). This means that ALL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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.
ALL currently has a forward P/E ratio of 7.55, while TKOMY has a forward P/E of 14.63. We also note that ALL has a PEG ratio of 0.40. 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 1.40.
Another notable valuation metric for ALL is its P/B ratio of 2.06. 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 2.53.
These are just a few of the metrics contributing to ALL's Value grade of A and TKOMY's Value grade of C.
ALL sticks out from TKOMY in both our Zacks Rank and Style Scores models, so value investors will likely feel that ALL is the better option right now.
View the Zacks #1 Rank List
Image: Bigstock
ALL vs. TKOMY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of Allstate (ALL - Free Report) and Tokio Marine Holdings Inc. (TKOMY - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Allstate is sporting a Zacks Rank of #1 (Strong Buy), while Tokio Marine Holdings Inc. has a Zacks Rank of #5 (Strong Sell). This means that ALL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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.
ALL currently has a forward P/E ratio of 7.55, while TKOMY has a forward P/E of 14.63. We also note that ALL has a PEG ratio of 0.40. 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 1.40.
Another notable valuation metric for ALL is its P/B ratio of 2.06. 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 2.53.
These are just a few of the metrics contributing to ALL's Value grade of A and TKOMY's Value grade of C.
ALL sticks out from TKOMY in both our Zacks Rank and Style Scores models, so value investors will likely feel that ALL is the better option right now.