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AXS vs. TKOMY: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Insurance - Property and Casualty stocks have likely encountered both Axis Capital (AXS - Free Report) and Tokio Marine Holdings Inc. (TKOMY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Axis Capital and Tokio Marine Holdings Inc. have a Zacks Rank of # 1 (Strong Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
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.
AXS currently has a forward P/E ratio of 8.01, while TKOMY has a forward P/E of 13.53. We also note that AXS has a PEG ratio of 1.60. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TKOMY currently has a PEG ratio of 4.54.
Another notable valuation metric for AXS is its P/B ratio of 1.35. 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, TKOMY has a P/B of 4.62.
Based on these metrics and many more, AXS holds a Value grade of A, while TKOMY has a Value grade of D.
Both AXS and TKOMY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AXS is the superior value option right now.
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AXS vs. TKOMY: Which Stock Should Value Investors Buy Now?
Investors with an interest in Insurance - Property and Casualty stocks have likely encountered both Axis Capital (AXS - Free Report) and Tokio Marine Holdings Inc. (TKOMY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Axis Capital and Tokio Marine Holdings Inc. have a Zacks Rank of # 1 (Strong Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
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.
AXS currently has a forward P/E ratio of 8.01, while TKOMY has a forward P/E of 13.53. We also note that AXS has a PEG ratio of 1.60. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TKOMY currently has a PEG ratio of 4.54.
Another notable valuation metric for AXS is its P/B ratio of 1.35. 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, TKOMY has a P/B of 4.62.
Based on these metrics and many more, AXS holds a Value grade of A, while TKOMY has a Value grade of D.
Both AXS and TKOMY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AXS is the superior value option right now.