Morningstar Magazine - December 2017/January 2018 - 69

Sector Snapshot: Financials
The data on this page represents financial companies covered by Morningstar analysts.

Industry Structure
Moat Breakdown*

Key Stats
Financials %

S&P 500 %

14.7

23.8

Wide Moat

Industry Map

Aggregates

Financials

Number of Companies

S&P 500

211

25840.0015
19802.0010

Narrow Moat

43.1

42.3

Total Market Cap $mil

9,862,156

24,222,663

No Moat

42.2

20.2

Total Fair Value $mil

9,525,777

23,535,132

Total Revenue $mil
Stock Type Breakdown

Financials %

35,066,532

S&P 500 %

3989.4002

2.8

Valuation

Distressed

0.0

3.6

Price/Fair Value

Hard Asset

0.0

0.0

P/E

27.0

42.1

Price/Book

1.53

Slow Growth

2.8

18.3

Price/Sales

2.86

Classic Growth

0.9

10.5

Price/CF

Aggressive Growth

0.5

6.0

0.0

1.6

67.3

1.6

Not Classified
*Based on Morningstar analyst coverage.

Large

7726.0000

25840.0015
25840.0015
19802.0010
19802.0010

11,160,004
13764.0005
13764.0005

7726.0000
7726.0000

Medium

5234.6003

1.4

Speculative Growth

13764.0005

31878.0020
31878.0020

6479.8004

High Yield

Cyclical

Market
Cap

504

31878.0020

2744.2001
1499.0000
1498.0

Financials

1.04
636.4

15.22

S&P 500
851.8

421.0

1.03
23.03
420
336

3.38

252

2.61

84

Overvalued

0

14.77

3.10

1.97

Financials

S&P 500

ROE %

11.03

14.43

ROA %

0.95

5.26

Profitability & Financial Health

Undervalued

168

10.25

Dividend Yield %

Small

1282.6

1067.2

Net Margin %

18.80

10.13

Debt/Capital %

34.72

43.42

0
0.5
Price/Fair Value

1

2

1.5

Financial firms are plotted based on their
market cap and price/fair value ratio. Companies
with a price/fair value ratio of less than 1
are undervalued. Companies with a ratio of more
than 1 are overvalued. Numbered plots show
companies listed in the table below.

0.0

0.5

1.0

1.5

2.0

0.0

0.5

1.0

1.5

2.0

Financials
Name/Ticker

Market
Cap ($mil)

Revenue
TTM ($mil)

Price/
Sales

Economic
Moat

Morningstar Uncertainty
Rating
Rating

461,164.51

239,892.00

1.92

Wide

QQQ

Medium

ProfitGrowth ability
Grade Grade

Financial Price/
Health
Fair Dividend
Grade
Value Yield %

C

C

Z

1

Berkshire Hathaway BRK.B

2

JPMorgan Chase JPM

350,164.71

98,194.00

3.68

Narrow

QQ

High

C

C

3

Industrial And Commercial Bank Of China 601398:CN

318,066.19

693,890.00

3.19

Narrow

QQQ

High

0.5

C

V

4

Bank of America BAC

287,154.79

86,906.00

3.42

Narrow

QQQ

High

C

X

5

Wells Fargo WFC

276,995.64

88,081.00

3.23

Wide

QQQQ

Medium

C

C

0.0

0.0

6

Visa Inc V

7 China Construction Bank 601939:CN

Wide

0.5

17,764.00

14.94

QQQ

Medium

225,121.89

604,512.00

3.01

Narrow

QQ

High

C

V

Citigroup C

195,735.47

71,206.00

2.84

Narrow

QQQ

High

C

C

9

HSBC Holdings ADR HSBC

195,528.50

59,849.00

3.25

Narrow

QQQ

Medium

V

V

10

Agricultural Bank of China 601288:CN

180,301.88

528,252.00

2.36

Narrow

QQQ

High

C
0.5

V

0.0

0.5

C
C

X

8

0.0

V

1.0

252,634.18

X

C
1.0

1.0

0.97

-

21.14

1.22

2.02

14.86

1.03

3.85

7.82

1.15

1.25

15.65

0.84

2.72

13.83

1.5

2.0

1.5

2.0

Z

1.03

0.59

40.88

V

1.12

3.94

7.62

C
V

1.0

Price/
Earnings

V

1.00

1.08

14.16

1.07

5.24

34.84

1.09

4.56

6.56

1.5

1.5

2.0

2.0

11

Ping An Insurance (Group) Co. of China 601318:CN

172,325.10

829,341.00

1.39

None

QQQ

High

X

C

C

1.09

1.64

15.93

12

Bank Of China 601988:CN

166,186.63

478,632.00

2.53

Narrow

QQQ

High

C

V

V

0.97

4.30

6.91

13

Mastercard MA

157,624.43

11,941.00

13.45

Wide

QQQ

Medium

X

Z

Z

1.13

0.59

34.68

14

China Life Insurance 601628:CN

130,002.26

631,985.00

1.40

None

QQ

High

C

C

.

1.57

0.73

27.79

15

Royal Bank of Canada RY

113,548.94

39,107.00

3.80

Wide

QQQ

Medium

C

C

V

1.02

3.42

13.70

Data as of 10/31/2017.

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