Friday, December 10, 2010

Update to Key Fundamental Statistics for US Banks

Many people have been requesting an update to the numbers in my Key Fundamental Statistics for US Banks ranking. So here are the updates to the numbers for P/E, P/S, P/B, Profit Margin and Dividend yield. The numbers in the original article were after each company's Q3 results so the margins remain the same but these numbers do reflect most recent stock prices so I can understand why people would want to refer to updates. Refer to my original article to get commentary related to them.If there's another metric you'd like to see in this ranking, request it in the comments section and I'll see if I can dig it up the next time I do this. The companies involved in this ranking are:

Bank of America Corp NYSE:BAC
BB&T Corporation NYSE:BBT
Capital One Financial Corporation NYSE:COF
Citigroup Inc NYSE:C
Fifth Third Bancorp NASDAQ:FITB
JPMorgan Chase and Co NYSE:JPM
PNC Financial Services Group Inc NYSE:PNC
Regions Financial Corp NYSE:RF
Suntrust Banks Incorporated NYSE:STI
US Bancorp NYSE:USB
Wells Fargo & Company NYSE:WFC


Price to Earnings

COF….......6.7
PNC.........10.6
JPM.........11.2
USB.........16.3
WFC….....17.5
BBT..........22.6
Industry...30.5
FITB.......163.0

Again, using this metric, COF dominates. PNC and JPM would be the only other two to be seriously considered using the P/E. Every Canadian bank does better than the rest of the US banks so I would lean in that direction if I were a bank investor. C, BAC, STI and RF are all negative and thus aren't ranked.

Price to Sales

BAC.........1.1
COF……...1.2
RF…….....1.2
JPM….…..1.6
STI…...…..1.6
WFC….....1.8
FITB……...1.8
C……...….1.8
BBT….…..1.9
PNC….…..2.0
Industry…2.4
USB……..2.7

Nothing much to say here other than at least we can see where C, BAC, RF and STI rank because they can't go to negative sales. BAC actually does rather well using the price to sales metric.

Price to Book

BAC……...0.6
RF…...…..0.6
COF……...0.7
STI…...…..0.7
C……...….0.8
JPM……...1.0
FITB….…..1.1
BBT……....1.1
PNC……...1.1
WFC……..1.3
Industry…1.3
USB……..1.8

My personal favourite, BAC leads this list again. Nice to see that if it has a ton of toxic assets on its balance sheet, at least people are paying 60 cents on the dollar for them. To be honest, BAC does do pretty well relative to C. COF is near the top of the list here too, impressive since it's at least earning money the "accounting" way.

Profit Margin

PNC……...20.47%
COF……...17.68%
USB….…..16.54%
JPM……...15.86%
Industry…14.76%
WFC …....14.10%
BBT…….....8.96%
FITB……....5.12%
C……...…..2.50%
BAC……...-1.05%
STI…….....-2.83%
RF……....-18.18%

Not much to say here, other than the usual suspects round out the bottom and the more decent plays are at the top. Wouldn't mind seeing that JPM number AFTER they are forced to liquidate their silver shorts.

Dividend Yield %

Industry…2.45%
BBT……...2.43%
USB……...0.82%
WFC……..0.70%
PNC…......0.69%
RF…….....0.67%
COF….…..0.52%
JPM….…..0.51%
BAC……..0.35%
FITB……..0.31%
STI……....0.16%
C……..….0.00%

That's not a typo, every US bank pays a lower dividend than the banking industry worldwide. It's those blasted Canadian companies and their 3-5% dividends!!! You can tell I am pushing them hard right? If you're interested in a report that lists the top 100 dividend companies, see my blog on it. It's a $19 subscription service, just warning you before you click on the link and become disappointed in me. I find it useful and it costs about the same as commission on 3 trades. If I'm going to advertise, it's not going to be on crap.

All numbers are updated as of December 9th, 2010. I do not own any of these companies, probably for a pretty good reason!

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