The net profit margin illustrates how much of each dollar earned by the company is translated into bottom line profits. Firm’s that can expand their net margin over time generally see their share price rise because of the direct correlation to increased profitability.
The price/sales ratio is an illustration of how much investors are willing to pay for every dollar of a company’s sales. The lower this ratio number is the more potential “value” there may be. Beware though that an extremely low P/S ratio could also indicate that something is fundamentally wrong with the company.
We ran a screen for financial companies with a net profit margin ((TTM)) of 5% or higher. From this narrowed pool we then screened for firms had a P/S ratio of less than 1. We did not screen out any companies by market cap.
The Price/Sales Value Ratio ranks the list from highest to lowest:
Jefferies Group, Inc. (JEF)
Sector | Financial Services |
Industry | Capital Markets |
Market Cap | $2,598 million |
Beta | 1.58 |
The company is a full service investment bank with a focus on middle-market companies. The firm has a P/S Ratio of 0.98. JEF’s Net Margin (TTM) is 10.20%. The short interest was N/A as of 08/31/2011.
Citigroup Inc. (C)
Sector | Financial Services |
Industry | Banks - Global |
Market Cap | $74,466 million |
Beta | 2.65 |
The company is a global bank that offers a variety of banking services. The firm has a P/S Ratio of 0.96. C’s Net Margin (TTM) is 12.24%. The short interest was 2.20% as of 08/31/2011.
Bbva Banco Frances,S.A. (BFR)
Sector | Financial Services |
Industry | Banks - Regional - Latin America |
Market Cap | $1,100 million |
Beta | 1.68 |
The company is a a private commercial bank in Argentina. The firm has a P/S Ratio of 0.92. BFR’s Net Margin (TTM) is 25.41%. The short interest was N/A as of 08/31/2011.
Credit Suisse Group. (CS)
Sector | Financial Services |
Industry | Banks - Global |
Market Cap | $ 28,898 million |
Beta | 1.43 |
The company offers Private Banking, Investment Banking, and Asset Management services. The firm has a P/S Ratio of 0.89. CS’s Net Margin (TTM) is 16.24%. The short interest was N/A as of 08/31/2011.
OneBeacon Insurance Group, Ltd. (OB)
Sector | Financial Services |
Industry | Insurance - Specialty |
Market Cap | $1,176 million |
Beta | 0.91 |
The company offers a variety of commercial and personal insurance products. The firm has a P/S Ratio of 0.89. OB’s Net Margin (TTM) is 7.09%. The short interest was 9.70% as of 08/31/2011.
Itau Unibanco Holding SA. (ITUB)
Sector | Financial Services |
Industry | Banks - Regional - Latin America |
Market Cap | $70,469 million |
Beta | 1.70 |
The firm has a P/S Ratio of 0.85. ITUB’s Net Margin (TTM) is 14.80%. The short interest was N/A as of 08/31/2011.
Woori Finance Holdings Co Ltd. (WF)
Sector | Financial Services |
Industry | Banks - Regional - Asia |
Market Cap | $6,810 million |
Beta | 2.38 |
The company is a Korean holding firm with subsidiaries in a in a variety of different financial services. The firm has a P/S Ratio of 0.81. WF’s Net Margin (TTM) is 13.95%. The short interest was N/A as of 08/31/2011.
Banco Santander SA. (STD)
Sector | Financial Services |
Industry | Banks - Regional - Europe |
Market Cap | $63,975 million |
Beta | 1.89 |
The Spanish bank offers a range of financial products internationally. The firm has a P/S Ratio of 0.67. STD’s Net Margin (TTM) is 15.60%. The short interest was N/A as of 08/31/2011.
Galicia Financial Group. (GGAL)
Sector | Financial Services |
Industry | Banks - Regional - Latin America |
Market Cap | $1,135 million |
Beta | 1.41 |
The company offers commercial banking and provides banking products to a variety of clients. The firm has a P/S Ratio of 0.62. GGAL’s Net Margin (TTM) is 6.54%. The short interest was N/A as of 08/31/2011.
Lincoln National Corp (Radnor, (LNC)
Sector | Financial Services |
Industry | Insurance - Life |
Market Cap | $ 5,128 million |
Beta | 2.80 |
The company is a holding firm with multiple insurance & investment management businesses along with other businesses. The firm has a P/S Ratio of 0.50. LNC’s Net Margin (TTM) is 7.81%. The short interest was 3.80% as of 08/31/2011.
We hope this list helps as investors do their own due diligence.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
