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TKOMY vs. KNSL: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Insurance - Property and Casualty sector might want to consider either Tokio Marine Holdings Inc. (TKOMY - Free Report) or Kinsale Capital Group, Inc. (KNSL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.

Currently, Tokio Marine Holdings Inc. has a Zacks Rank of #2 (Buy), while Kinsale Capital Group, Inc. 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. However, value investors will care about much more than just this.

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.

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 9.51, while KNSL has a forward P/E of 24.62. We also note that TKOMY has a PEG ratio of 0.64. 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 1.64.

Another notable valuation metric for TKOMY is its P/B ratio of 2.22. 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 6.75.

Based on these metrics and many more, TKOMY holds a Value grade of B, while KNSL has a 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 report >>

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