10 Profitable Financials Near 52-Week Lows

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 |  Includes: ACAS, ARCC, CBOE, CNS, FII, MCO, SEIC, TROW, WDR, WU
by: Follow My Alpha

Three years after the financial crisis, the financial services industry remains the all-American pariah. While this isn’t any the aspiration of any firm or sector, we don’t min,d because it lets the intelligent investors take advantage of the current situations where emotion is dictating objectivity. After all, if it takes money to make money, then the global financial services system will likely remain a cornerstone of human civilization in perpetuity, and cheap names should be reviewed now.

Return on Assets (ttm) is a profitability ratio that lets investors understand how much profit is being generated off firm assets by themselves. This type of information is helps generate an idea of how well firm assets are being utilized by management. The higher this number is in relation to larger profits with smaller investments generally illustrates that management’s solid capability in maximizing effectiveness with a company’s assets.

Today we looked for financial service stocks that are trading with a high P/BV ratio (X>8). From this narrowed list of candidates we then identified companies that have underperformed the S&P 500 over the last 3 months. We did not screen out any companies that were above $250M in market capitalization.

1. CBOE Holdings, Inc. (NASDAQ:CBOE)

Sector

Financial Services

Industry

Financial Exchanges

Market Cap

$2,332M

Beta

N/A

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The company’s ROA (ttm) is 30.73%. CBOE is 19.54% above its 52-week low. The short interest was 3.70% as of 08/31/2011.

2. Moody's Corporation (NYSE:MCO)

Sector

Financial Services

Industry

Capital Markets

Market Cap

$7,700M

Beta

1.32

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The firm offers credit ratings, research & analysis covering fixed-income securities, and other related financial services. The company’s ROA (ttm) is 19.99%. MCO is 29.00% above its 52-week low. The short interest was 13.80% as of 08/31/2011.

3. T. Rowe Price Group. (NASDAQ:TROW)

Sector

Financial Services

Industry

Asset Management

Market Cap

$12,890M

Beta

1.73

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The firm makes money primarily from investment advisory services to individual and institutional investors. The company’s ROA (ttm) is 17.43%. TROW is 14.19% above its 52-week low. The short interest was 2.40% as of 08/31/2011.

4. SEI Investments Company. (NASDAQ:SEIC)

Sector

Financial Services

Industry

Asset Management

Market Cap

$2,868M

Beta

1.17

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A global provider of asset management services, investment processing and investment operations solutions. The company’s ROA (ttm) is 17.41%. SEIC is 14.42% above its 52-week low. The short interest was 0.80% as of 08/31/2011.

5. Federated Investors, Inc. (NYSE:FII)

Sector

Financial Services

Industry

Asset Management

Market Cap

$2,011M

Beta

0.84

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The company is a provider investment management products and related financial services. The company’s ROA (ttm) is 15.99%. FII is 20.42% above its 52-week low. The short interest was N/A as of 08/31/2011.

6. Cohen & Steers Inc. (NYSE:CNS)

Sector

Financial Services

Industry

Asset Management

Market Cap

$1,061M

Beta

1.99

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The company specializes in managing high-income equity portfolios. The company’s ROA (ttm) is 15.79%. CNS is 3.32% above its 52-week low. The short interest was N/A as of 08/31/2011.

7. American Capital Ltd. (NASDAQ:ACAS)

Sector

Financial Services

Industry

Asset Management

Market Cap

$2,664M

Beta

2.84

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The company offers business development services and alternative asset management services. The company’s ROA (ttm) is 15.76%. ACAS is 25.92% above its 52-week low. The short interest was N/A as of 08/31/2011.

8. Waddell & Reed Financial, Inc. (NYSE:WDR)

Sector

Financial Services

Industry

Asset Management

Market Cap

$2,213M

Beta

1.89

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The company provides investment management, investment product, underwriting, and other financial services. The company’s ROA (ttm) is 15.02%. WDR is 12.52% above its 52-week low. The short interest was 4.00% as of 08/31/2011.

9. Ares Capital Corporation (NASDAQ:ARCC)

Sector

Financial Services

Industry

Asset Management

Market Cap

$3,124M

Beta

2.01

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The company primarily invests in long-term mezzanine debt, along with f second lien senior loans. The company’s ROA (ttm) is 14.09%. ARCC is 19.45% above its 52-week low. The short interest was N/A as of 08/31/2011.

10. The Western Union Company (NYSE:WU)

Sector

Financial Services

Industry

Asset Management

Market Cap

$10,828M

Beta

1.62

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The company offers deals in money transfer services around the world. The company’s ROA (ttm) is 11.36%. WU is 18.56% above its 52-week low. The short interest was 2.10% as of 08/31/2011.

We hope this list helps as investors do their own due diligence and research on financial service companies.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.