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Interested in financial stocks? Better yet, are you looking for undervalued stocks? Do you prefer companies with strong profits? If so, you'll probably like this list.

The Price/Sales ratio is a price-multiple valuation metric used to help identify if a firm is cheap by its twelve month trailing sales numbers. In the most basic terms it lets an investor know how much the investment community is willing to pay for every dollar worth of sales. A firm with a P/S ratio of one or lower would be viewed as cheap, because investors are paying $1 or less for every dollar's worth of a firm's sales. On the other hand, a firm is generally considered to be expensive when the P/S ratio is above three. These are general guidelines used by the investment community, not hard rules. To be clear: Price/Sales Ratio = Current Stock Price/Revenue (sales) per Share

The Net Margin is a profitability metric that illustrates, by percentage, how much of every dollar earned gets turned into a bottom line profit. This is just one of many profitability metrics used by investors and analysts to better understand what the company is being left with at the end of the day. Generally, a firm that can expand its net profit margins over a period of time will see its stock price rise as well due to the trend of increasing profitability. Net Margin = Net Income/Total Revenue

We first looked for Financial stocks that are trading at a discount (P/S<1) and that have strong bottom line profitability (Net Margin [TTM]>10%). We did not screen out any market caps. Do you think these financial stocks are worth more than the market currently says? Use our screened list as a starting point for your own analysis.

1) Brookfield Residential Properties Inc. (NYSE:BRP)

Sector: Financial
Industry: Real Estate Development
Market Cap: $790.25M
Beta: 1.47

Brookfield Residential Properties Inc. has a Price/Sales Ratio of 0.11 and Net Margin of 10.73%. The short interest was 2.52% as of 04/25/2012. Brookfield Residential Properties Inc. operates as a land developer and homebuilder in North America. The company engages in the entitlement and development of land; design, construction, and marketing of single-family and multi-family homes; and sale of lots to homebuilders and third parties. As of December 31, 2011, it controlled 108,197 lots.

2) Apollo Global Management, LLC (NYSE:APO)

Sector: Financial
Industry: Diversified Investments
Market Cap: $1.61B
Beta: -

Apollo Global Management, LLC has a Price/Sales Ratio of 0.62 and Net Margin of 33.59%. The short interest was 5.90% as of 04/25/2012. Apollo Global Management, LLC is a publicly owned investment manager. The firm primarily provides its services to pension and endowment funds, institutional investors, individual investors, pooled investment vehicles, and corporations. It manages client focused portfolios, hedge funds, real estate funds, and private equity funds for its clients.

3) FXCM Inc. (NYSE:FXCM)

Sector: Financial
Industry: Investment Brokerage - National
Market Cap: $231.07M
Beta: -

FXCM Inc. has a Price/Sales Ratio of 0.56 and Net Margin of 14.13%. The short interest was 21.18% as of 04/25/2012. FXCM Inc. provides online foreign exchange [FX] trading and related services to retail and institutional customers worldwide. The company acts as an agent between retail customers, and a collection of global banks and financial institutions. It offers spot FX trading in approximately 56 currency pairs; enables the non-U.

*Company profiles were sourced from Finviz.

Source: 3 Cheap Financial Stocks That Keep Bringing In Profits