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….......8.9
PNC.........9.8
JPM.........12.5
USB.........17.3
WFC….....18.7
BBT..........23.5
Industry...34.0
C..............95.9
FITB.......254.5
COF, PNC and JPM would be the banks to be seriously considered as a buy when 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. BAC, STI and RF are all negative and thus aren't ranked but on a positive note Citi will start having marginal earnings and appears with a positive P/E for the first time in a long time. Notice that the industry P/E has skyrocketed to 34.0 based on huge price increases and mediocre earnings. Investors expect a lot of improvement for Q4 and some positive guidance for 2011 in the next couple of weeks. If it doesn't happen, the banks could be in for a slide.
Price to Sales
| BAC.........1.3 |
| COF……...1.4 |
| RF…….....1.4 |
| JPM….…..1.7 |
| FITB……...1.8 |
| STI…...…..1.8 |
| WFC….....1.9 |
| C……...….1.9 |
| BBT….…..2.0 |
| PNC….…..2.0 |
| Industry…2.4 |
| USB……..2.8 |
Nothing much to say here other than at least we can see where 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……...0.7 |
| RF…...…..0.7 |
| COF……...0.8 |
| STI…...…..0.8 |
| C……...….0.9 |
| JPM……...1.0 |
| FITB….…..1.1 |
| BBT……....1.1 |
| PNC……...1.1 Industry…1.3 |
| WFC……..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 70 cents on the dollar for them. COF is near the top of the list here too, impressive since it's at least earning money the "accounting" way. Note that pretty much every bank has had an increasing P/B thanks to an increase in stock price, reflecting investor expectations of positive future outcomes with the toxic assets and stress tests.
Profit Margin
| PNC……...20.47% |
| COF……...17.68% |
| USB….…..16.54% |
| JPM……...15.86% |
| Industry…14.54% |
| WFC …....14.10% |
| BBT…….....8.96% |
| FITB……....5.12% |
| C……...…..2.50% |
| BAC……...-1.05% |
| STI…….....-2.83% |
| RF……....-18.18% |
Dividend Yield %
| Industry…2.69% |
| BBT……...2.26% |
| USB……...0.77% |
| WFC……..0.64% |
| PNC…......0.64% |
| RF…….....0.55% |
| JPM….…..0.46% |
| COF….…..0.43% |
| BAC……..0.27% |
| FITB……..0.27% |
| STI……....0.14% |
| C……..….0.00% |
Every US bank pays a lower dividend than the banking industry worldwide. And while the industry dividend yield has been increasing, these banks' yield has been decreasing thanks to their price increases. It'll be interesting to see if these banks are able to follow up on the rumors to increase their dividends like banks have been doing worldwide. If you're looking for better yields, the Canadian banks have 3-5% dividends. If you're interested in a report that lists the top 100 dividend companies, see my blog on it. It's a subscription service that I find 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 January 12th, 2011. I do not own any of these companies, probably for a pretty good reason!
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These statistics mean nothing if FEDERAL REGULATORS don't REGULATE! Wells Fargo has been involved in FELONY GRAND THEFT and FRAUD with PG&E checks, payable solely to The MADDEN Company, yet cashed ILLEGALLY by WELLS FARGO. Who is LOOKING OUT FOR AMERICANS, if all WELLS FARGO has to do is HIRE THE BANK REGULATORS to come WORK FOR WELLS FARGO?
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