Is Apple Worth More Than the Largest Banks in Europe?

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 |  Includes: AAPL, BBVA, BCS, DB, ING, SAN
by: Rougemont
What if you were told that Apple (NASDAQ:AAPL) is worth more than 32 of the largest banks in Europe? A new Reuters article states "Technology company Apple is now worth as much as the 32 biggest euro zone banks. That's the stark result from a steep fall in the share price of banks including Spain's Santander (STD), France's BNP Paribas, Germany's Deutsche Bank (NYSE:DB) and Italy's Unicredit, compared to a steady rise in Apple's valuation, according to Thomson Reuters data. Earlier on Friday the DJ STOXX euro zone banks index fell 4 percent, valuing its 32 members at $340 billion. That's based on the market capitalization of their free-float shares, which for some French banks in particular is less than 100 percent." Read the entire article here.
It is absolutely amazing to see this contrast in valuation, and it says that either the financial system in Europe is possibly at risk of collapse or that it is just way too undervalued. It could also say that Apple is overvalued, but based on the growth and price to earnings ratio, it is hard to say Apple is expensive. Some of these European banks look downright cheap and most of them, possibly all of them, will survive the current challenges. Here is a closer look at a few leading European banks, as well as Apple:
Apple, Inc. (AAPL) shares are trading over $356.03. Apple is a leading maker of computers and mobile devices. The 50 day moving average is $359.94 and the 200 day moving average is $342.37. Earnings estimates for AAPL are about $27.41 per share in 2011 and $32.12 for 2012. The 52 week range is $235.56 to $404.50. Apple is a great company and will probably continue to be a solid investment for the foreseeable future. The market cap is about $331 billion. I would buy AAPL on dips.
Banco Santander (STD) is trading at $8.72. STD is a major bank and is based in Spain. These shares have a 52 week range of $8 to $13.52. The 50 day moving average is $10.25 and the 200 day moving average is $10.89, so the shares are trading well below support levels. Estimates for STD are at $1.25 per share in 2011. The headlines about Spain, Portugal and other countries have been very negative lately over concerns of sovereign debt defaults and the Euro as a currency. The market cap is about $53 billion.
Barclays PLC (NYSE:BCS) shares are trading at $9.89. Barclays is a leading banking and financial services company based in the United Kingdom. The 50 day moving average is $14.51 and the 200 day moving average is $17.34. The 52 week range for these shares is $9.85 to $21.69. Earnings estimates for BCS are about $1.88 per share for 2011. BCS pays a dividend of 26 cents per share, which is equivalent to a 2.3% yield. The book value is stated at $28.15. The market cap is about $29 billion.
Banco Bilbao Vizcaya (NYSE:BBVA) is trading at $8.66. BBVA is a major bank and is based in Spain. These shares have a 52 week range of $8.02 and $14.05. The 50 day moving average is $10.30 and the 200 day moving average is $11.04, so the shares are trading way below support levels. Estimates for BBVA are at $1.18 per share in 2011 and $1.39 for 2012. Book value is stated at $11.34. The headlines about Spain, Portugal and other countries have been very negative lately, over concerns of sovereign debt defaults and the Euro as a currency. The market cap is about $39 billion.
ING Group NV (NYSE:ING) shares are trading at $7.81. ING is a leading banking and financial services company, based in the Netherlands. The 50 day moving average is $10.67 and the 200 day moving average is $11.34. The 52 week range for these shares is $7.76 to $13.41. Earnings estimates for ING are about $2.15 per share for 2011. The book value is stated at $15.53. The market cap is about $30 billion.
Deutsche Bank AG (DB) shares are trading at $38.44. Deutsche Bank is a leading banking and financial services company based in Germany. The 50 day moving average is $52.75 and the 200 day moving average is $56.81. The 52 week range for these shares is $38.32 to $67.64. Earnings estimates for DB are about $7.54 per share for 2011. DB pays a dividend of 79 cents per share, which is equivalent to a 1.8% yield. The book value is stated at $79.27. The market cap is about $35 billion.
The data is sourced from Yahoo Finance and Stockcharts.com. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in AAPL over the next 72 hours.