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Investors with an interest in Insurance - Property and Casualty stocks have likely encountered both Tokio Marine Holdings Inc. (TKOMY) and Kinsale Capital Group, Inc. (KNSL). 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 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.
Tokio Marine Holdings Inc. and Kinsale Capital Group, Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. 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 try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TKOMY currently has a forward P/E ratio of 9.88, while KNSL has a forward P/E of 26.04. We also note that TKOMY has a PEG ratio of 0.66. 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. KNSL currently has a PEG ratio of 1.74.
Another notable valuation metric for TKOMY is its P/B ratio of 2.47. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, KNSL has a P/B of 7.08.
These are just a few of the metrics contributing to TKOMY's Value grade of B and KNSL's Value grade of D.
TKOMY has seen stronger estimate revision activity and sports more attractive valuation metrics than KNSL, so it seems like value investors will conclude that TKOMY is the superior option right now.
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Tokio Marine Holdings Inc. (TKOMY) : Free Stock Analysis Report
Kinsale Capital Group, Inc. (KNSL) : Free Stock Analysis Report