12 Large Financial Institutions Trading Under Book Value in August
Citizens Financial Group Inc. (NYSE: CFG) is valued at 0.85 times book value, and the stock was last seen trading down more than 15% from its 52-week high, despite beating earnings expectations in July. This is the holding company for Citizens Bank, and Citizens Bank of Pennsylvania for retail and commercial banking products and services in the eastern and midwestern United States. Its dividend yield is about 2.2%.
Citizens Financial traded at $33.42, in a 52-week range of $23.37 to $39.75. Its consensus analyst target is $38.96. The market cap is $16.7 billion.
Leucadia: The Mini-Buffett Stock
Leucadia International Corp. (NYSE: LUK) screens out as being valued at 0.84 times book value. There was a debate on including this “miniature Berkshire Hathaway” due to real estate, car and motorcycle leases and dealerships, food, and oil and gas. Still, Leucadia owns the well-known Jefferies investment banking firm and this makes up a large part of its $8.6 billion market cap. Its dividend yield is about 1.6%.
Leucadia was last seen at $24.00 and has a 52-week range of $17.87 to $27.34. Its consensus target price is $30.00.
Citigroup Inc. (NYSE: C) is valued at just 0.87 times book value, the lowest valuation of all money center banks. The banking giant still has many international operations and arguably could still sell off more assets. That being said, Citi was recently given approval by the Federal Reserve to increase its capital return plan for shareholders by a larger amount than Wall Street was expecting. Its current dividend yield is 1.21%, but that will go to almost 2% when its 16-cent payout goes as high as 32 cents.
Citigroup traded at $66.85 and has a 52-week range of $45.16 to $69.86. Its consensus target price is $72.41, and its market cap is $182.1 billion.
Prudential Financial Inc. (NYSE: PRU) is valued at 0.90 times book value, and the insurer’s stock is still about 15% under its 52-week high. It comes with nearly a 3% dividend yield, and its stock has doubled in the past five years. The provider of life insurance, annuities, investment management and other financial products is also said to be trying to get out from under its “too big to fail” (SIFI) status as well. With a $43 billion market cap, it may seem like it is not too big to fail, but it dates back to the 1800s. As of 2017 it had $3.7 trillion worth of life insurance in force and over $1.3 trillion in assets under management.
Prudential traded at $101.90, in a 52-week range of $76.37 to $115.26. Its consensus target price is $115.46. Its market cap is $43.5 billion.
New York Community Bancorp Inc. (NYSE: NYCB) is valued at 0.94 times book value, and the bank now has about $48 billion in assets. The bank specified a continuing desire to manage its balance sheet below the current $50 billion SIFI threshold. The bank also has exposure to New York City taxi medallion loans, but its latest 17-cent dividend would imply a 5.7% yield that feels too high for a regional bank. It has also been hitting 52-week lows and is now down more than 30% from its 52-week high.
The shares were last seen at $11.96, in a 52-week range of $11.86 to $17.68. The consensus target price is $13.48, and the market cap is $5.9 billion.
Lincoln National Corp. (NYSE: LNC) is valued at 0.95 times book value, and the life insurance company has seen its shares sell off by more than 10% in the past month alone. Its dividend yield is currently just about 1.7%, and it is valued at less than nine times next year’s expected earnings.
Lincoln National traded at $67.84 and has a 52-week range of $44.74 to $75.78. Its consensus target price is $78.27, and its market cap is $15.0 billion.