Investors looking for stocks in the Insurance - Property and Casualty sector might want to consider either Tokio Marine Holdings Inc. (TKOMY) or 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.

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.

Tokio Marine Holdings Inc. and Kinsale Capital Group, Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TKOMY is likely seeing its earnings outlook improve to a greater extent. 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.

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 9.19, while KNSL has a forward P/E of 24.69. We also note that TKOMY has a PEG ratio of 0.62. 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 1.65.

Another notable valuation metric for TKOMY is its P/B ratio of 2.15. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, KNSL has a P/B of 6.77.

These metrics, and several others, help TKOMY earn a Value grade of B, while KNSL has been given 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 Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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