2/21/2012

9 Best Yielding Money Center Banks Below Book Value

The Best Yielding Money Center Banks Under Book Value Researched By Dividend Yield - Stock, Capital, Investment. Stocks from the money center banks industry still have tough times. Three years after the Lehman collapse, there is still pressure on the banking sector. The investment banking divisions are weak, equity efforts are higher and it is harder to make money at low interest rates in struggling economies. The current unattractiveness of the industry can also be an opportunity for cyclic investors.

I screened the money center industry by stocks with the best dividend yield as well as an price to book ratio of less than one. The industry has thirty companies of which eighteen pay dividends. Only nine of them are below their book value and seven of them have a buy or better rating.

Here are my favorite stocks:
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JPMorgan Chase & Co. (NYSE:JPM) has a market capitalization of $145.14 billion. The company employs 260,157 people, generates revenues of $61,293.00 million and has a net income of $18,976.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $41,201.00 million. Because of these figures, the EBITDA margin is  67.22 percent (operating margin 27.51 percent and the net profit margin finally 19.52 percent).


Financial Analysis:
The total debt representing 30.22 percent of the company’s assets and the total debt in relation to the equity amounts to 373.04 percent. Due to the financial situation, a return on equity of 10.21 percent was realized. Twelve trailing months earnings per share reached a value of $4.47. Last fiscal year, the company paid $1.00 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 8.61, Price/Sales 1.50 and Price/Book ratio 0.83. Dividend Yield: 2.60 percent. The beta ratio is 1.24.


Long-Term Stock History Chart Of JPMorgan Chase & Co. (Click to enlarge)


Long-Term Dividends History of JPMorgan Chase & Co. (JPM) (Click to enlarge)


Long-Term Dividend Yield History of JPMorgan Chase & Co. (NYSE: JPM) (Click to enlarge)


PNC Financial Services (NYSE:PNC) has a market capitalization of $32.22 billion. The company employs 45,676 people, generates revenues of $11,150.00 million and has a net income of $3,024.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,737.00 million. Because of these figures, the EBITDA margin is 51.45 percent (operating margin 25.73 percent and the net profit margin finally 19.16 percent).


Financial Analysis:
The total debt representing 12.65 percent of the company’s assets and the total debt in relation to the equity amounts to 110.59 percent. Due to the financial situation, a return on equity of 8.77 percent was realized. Twelve trailing months earnings per share reached a value of $6.32. Last fiscal year, the company paid $0.40 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 9.67, Price/Sales 2.04 and Price/Book ratio 0.99. Dividend Yield: 2.29 percent. The beta ratio is 1.21.


Long-Term Stock History Chart Of PNC Financial Services (Click to enlarge)


Long-Term Dividends History of PNC Financial Services (PNC) (Click to enlarge)


Long-Term Dividend Yield History of PNC Financial Services (NYSE: PNC) (Click to enlarge)


Citigroup (NYSE:C) has a market capitalization of $96.25 billion. The company employs 266,000 people, generates revenues of $72,681.00 million and has a net income of $11,312.00 million.


Financial Analysis:
The total debt representing 30.75 percent of the company’s assets and the total debt in relation to the equity amounts to 323.85 percent. Due to the financial situation, a return on equity of 6.42 percent was realized. Twelve trailing months earnings per share reached a value of $3.66. Last fiscal year, the company paid $0.03 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 9.00, Price/Sales 1.23 and Price/Book ratio 0.54. Dividend Yield: 0.12 percent. The beta ratio is 2.56.


Long-Term Stock History Chart Of Citigroup Inc. (Click to enlarge)


Long-Term Dividends History of Citigroup Inc. (C) (Click to enlarge)


Long-Term Dividend Yield History of Citigroup Inc. (NYSE: C) (Click to enlarge)


Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 12.97 and forward P/E ratio is 17.74. The dividend yield has a value of 0.95 percent. Price to book ratio is 0.71 and price to sales ratio 2.58. The operating margin amounts to 17.83 percent.

Here is the full table with some fundamentals (TTM):

The Best Yielding Money Center Banks Below Book Value (Click to enlarge)

Related stock ticker symbols:
JPM, PNC, OFG, TCB, KEY, MTU, FBNK, STI, C

Selected Articles:

* I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.

2 comments:

  1. I would not own any money center banks. I have never liked financial stocks. I can remember back in the nineteen eighities when almost two thirds of all the savings and loans were taken over by the FDIC the arm of the federal government that is suppose to regulate banks and other financial institutions. Their were thousands of persons charged with all sorts of crimes during and after the savings and loan debacle. Also many of the nations large money center banks were close to insolvency during the 1980's and even into the early 1990's. I cannot believe that not anyone on wall street has been charged with any sort of crime whatsoever after the financial crisis of two thousand eight and two thousand nine that almost brought down the whole financial system.

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  2. The financial industry is suffering at the moment. They are the worst performers over the recent years. But I am quiete sure that investors will come back in the future. The banking sector is a major part of the ecomomy and will grow faster than the inflation due to QE programms of the national federal reserves.

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