The Price/Sales Ratio is a well known price-multiple valuation metric. This ratio shows investors how much the investment world values every dollar of a firm’s sales. A lower ratio signifies more potential investment opportunity. Given the market uncertainty related to financial companies we thought that this would be an interesting metric to use when looking for potential opportunities within the space.
We ran a screen for Financial Stocks with a P/S Ratio of 1 or less. From this narrowed pool we then screened for firms that were at least 20% below their 52-Week High.
The Forward P/BV Ratio ranks the firms highest to lowest:
1. Citigroup Inc. (C)
Sector | Financial Services |
Industry | Banks - Global |
Market Cap | $78,026M |
Beta | 2.65 |
The company offers consumer and corporate financial services around the world. The firm’s P/S Ratio is 1. C is 48.08% below its 52-Week High. The short interest was 1.90% as of 08/15/2011.
2. First Horizon National Corp. (FHN)
Sector | Financial Services |
Industry | Banks-Regional - US |
Market Cap | $1,638M |
Beta | 0.73 |
The company operates First Tennessee Bank National Association and offers a variety of financial services through four business segments. The firm’s P/S Ratio is 0.99. FNH is 50.99% below its 52-Week High. The short interest was 3.10% as of 08/15/2011.
3. Knight Capital Group, Inc. (KCG)
Sector | Financial Services |
Industry | Capital Markets |
Market Cap | $1,162M |
Beta | 0.20 |
The company provides access to the capital markets. The firm’s P/S Ratio is .99. KGC is 20.38% below its 52-Week High. The short interest was 14.20% as of 08/15/2011. Given the high short interest this may be a short favorite or potentially a great short squeeze.
4. Cowen Group, Inc. (COWN)
Sector | Financial Services |
Industry | Capital Markets |
Market Cap | $366M |
Beta | 1.13 |
The company offers sales and trading, research, and other financial services. The firm’s P/S Ratio is 0.97. COWN is 37.50% below its 52-Week High. The short interest was 17.80% as of 08/15/2011.
5. Och-Ziff Capital Management (OZM)
Sector | Financial Services |
Industry | Asset Management |
Market Cap | $3,702M |
Beta | 0.95 |
The firm’s P/S Ratio is 0.96. OZM is 43.62% below its 52-Week High. The short interest was 36.01% as of 08/15/2011. Given the high short interest this may be a short favorite or potentially a great short squeeze.
6. Raymond James Financial, Inc. (RJF)
Sector | Financial Services |
Industry | Capital Markets |
Market Cap | $3,215M |
Beta | 1.22 |
The company offers a variety of financial products and services. The firm’s P/S Ratio is 0.95. RJF is 36.01% below its 52-Week High. The short interest was 2.00% as of 08/15/2011.
7. XL Group PLC (XL)
Sector | Financial Services |
Industry | Insurance - Property & Casualty |
Market Cap | $5,734M |
Beta | 2.47 |
The company offers reinsurance, insurance, and other financial products. The firm’s P/S Ratio is 0.95. XL is 24.30% below its 52-Week High. The short interest was 4.90% as of 08/15/2011.
8. Axis Capital Holdings Ltd. (AXS)
Sector | Financial Services |
Industry | Insurance - Property & Casualty |
Market Cap | $3,495M |
Beta | 0.70 |
The company offers insurance and reinsurance products worldwide. The firm’s P/S Ratio is 0.90. AXS is 28.48% below its 52-Week High. The short interest was 1.40% as of 08/15/2011.
9. Nomura Holdings, Inc. (NMR)
Sector | Financial Services |
Industry | Capital Markets |
Market Cap | $13,620M |
Beta | 1.41 |
The company is a investment banking and securities firm. The firm’s P/S Ratio is 0.8. NMR is 44.00% below its 52-Week High. The short interest was N/A as of 08/15/2011.
10. Itau Unibanco Holding SA (ITUB)
Sector | Financial Services |
Industry | Banks - Regional - Latin America |
Market Cap | $77,588M |
Beta | 1.70 |
The firm’s P/S Ratio is 0.85. ITUB is 34.94% below its 52-Week High. The short interest was N/A as of 08/15/2011.
We hope this list helps as investors do their own due diligence on firms in the Financial Sector.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
