6 Mid-Cap Financial Companies for Value Investors to Watch

Michael Teague  |

Most talk of the financial industry centers around the major players like Bank of America (BAC)J.P. Morgan (JPM)Wells Fargo (WFC), or even major insurance companies like AFLAC (AFL).  This makes sense because the size of these companies makes their every move consequential for the rest of their respective industries and sectors, if not the market as a whole. But the reality is that the financial industry is made up of hundreds of companies--mid-sized banks, and specialty insurance providers for instance—that do not receive as much, if any, attention, but whose performance on the market may warrant a closer look.

The following stocks, on the other hand, represent mid-cap ($2 billion to $10 billion) U.S.-based financial companies on the S&P 500 index.  They were chosen based on their low price-to-book ratios (1 or under) and price-to-earnings ratios (15 or under) as these are potential signals that they are undervalued by the market.  With this in mind, and considering their relatively positive performances over the past 6 months, and modestly positive earnings-per-share growth projected for the next 5 years, it might be a good idea to keep an eye on them:

Lincoln Nation Corp. (LNC) – The American Life Insurance provider, named after the 16th president of the United States, has a market cap of $8.04 billion, a P/B ratio of 0.54, a P/E ratio of 6.49.  Over the past six months, the company has gained 23.24 percent, with a projected EPS growth for the next five years of 8.52 percent.  Lincoln national also offers a dividend yield of 1.64 percent.

Assurant Inc. (AIZ) – The New York-based accident insurance provider has a market cap of $3.23 billion, a P/B ratio of 0.62, a P/E ratio of 7.34.  Over the past six months, the company has gained 19.88 percent, with a projected EPS growth for the next five years of 9.67 percent.  Assurant has a solid dividend yield of 2.05 percent.

Unum Group (UNM) – Headquartered in Chattanooga, Tennessee, the accident and life insurance provider has a market cap of $6.59 billion, a P/B ratio of 0.75, a P/E ratio of 7.54.  Over the past six months, the company has gained 25.04 percent, with a projected EPS growth for the next five years of 7.83 percent.  Unum sports a dividend yield of 2.17 percent.

Huntington Bancshares Inc. (HBAN) – The Columbus, Ohio bank serves Ohio, Pennsylvania, Michigan, Kentucky, West Virginia, and Indiana.  It has a market cap of $5.78 billion, a P/B ratio of 1.00, a P/E ratio of 9.66.  Over the past six months, the company has gained 6.52 percent, with a projected EPS growth for the next five years of 6 percent.  Additionally, Huntington’s dividend yield is at 2.33 percent.

Principal Financial Group Inc. (PFG) – The Des Moines, Iowa-based asset management company has a market cap of $9.07 billion, a P/B ratio of 0.92, a P/E ratio of 11.98.  Over the past six months, the company has gained 18.20 percent, with a projected EPS growth for the next five years of 11.08 percent.  To sweeten these numbers is Principal’s healthy dividend yield of 2.98 percent.

Comerica Incoporated (CMA) – Headquartered in Dallas, Texas, the bank has a market cap of $6.32 billion, a P/B ratio of 0.91, a P/E ratio of 12.54.  Over the past six months, the company has gained 7.73 percent, with a projected EPS growth for the next five years of 7.17 percent.  Additionally, CMA also offers a dividend yield of 2.02 percent.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.

Companies

Symbol Name Price Change % Volume
AFL AFLAC Incorporated 53.42 0.63 1.19 3,369,765 Trade
LNC Lincoln National Corporation 60.04 0.84 1.42 1,393,607 Trade
AIZ Assurant Inc. 133.77 2.20 1.67 457,967 Trade
AC:CA Air Canada Voting and Variable Voting Shares 51.08 -0.71 -1.37 1,767,395
HBAN Huntington Bancshares Incorporated 14.71 0.05 0.34 9,582,930 Trade
BAC Bank of America Corporation 34.71 -0.01 -0.03 54,156,070 Trade
UNM Unum Group 29.37 0.23 0.79 1,457,616 Trade
CMA Comerica Incorporated 68.72 0.48 0.70 2,146,028 Trade
WFC Wells Fargo & Company 49.18 -0.07 -0.14 29,669,233 Trade
JPM JP Morgan Chase & Co. 138.20 0.95 0.69 14,697,672 Trade

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