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

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Investors looking for stocks in the Insurance - Property and Casualty sector might want to consider either Axis Capital (AXS - Free Report) or 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Axis Capital has a Zacks Rank of #1 (Strong Buy), while Tokio Marine Holdings Inc. has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AXS is likely seeing its earnings outlook improve to a greater extent. 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 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.

AXS currently has a forward P/E ratio of 7.58, while TKOMY has a forward P/E of 14.37. We also note that AXS has a PEG ratio of 1.52. 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. TKOMY currently has a PEG ratio of 4.82.

Another notable valuation metric for AXS is its P/B ratio of 1.18. 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, TKOMY has a P/B of 4.91.

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

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


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