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Dimon's Political Victory Rings Hollow for Shareholders: FBR

Looking at the other "big four" club members, JPMorgan Chase trades lower to forward earnings estimates than two of the other banks, but also at a higher multiple to book value than two of the others:

  • Citigroup closed at $27.67 Wednesday, returning 5% year-to-date, following a 44% decline last year. The shares trade for just over half their reported March 31 tangible book value of $50.90, and for six times the consensus 2013 EPS estimate of $4.63. The consensus 2012 EPS estimate is $4.12.
  • Shares of Bank of America closed at $7.50 Wednesday, returning 35% year-to-date, after dropping 58% in 2011. The shares trade for just 0.6 times their reported March 31 tangible book value of $12.87, and for 7.5 times the consensus 2012 EPS estimate of $1.01. The consensus 2012 EPS estimate is 59 cents.
  • As the strongest earner among the big four -- with returns on average assets ranging from 1.21% to 1.30% over the past five quarters, according to Thomson Reuters Bank Insight -- Wells Fargo trades the highest relative to tangible book value and earnings estimates. The shares closed at $31.58 Wednesday, returning 16% year-to-date, following last year's 10% decline, and trade for 1.9 times tangible book value, and for nine times the consensus 2013 EPS estimate of $3.67. The consensus 2012 EPS estimate for Wells Fargo is $3.27.

Miller concluded by saying JPMorgan Chase's "stock should trade closer to tangible book value given the uncertainty surrounding JPMorgan's earnings as the company unwinds the credit derivative portfolio and the CIO's office ceases to be fully operational."

Interested in more JPMorgan Chase? See TheStreet Ratings' report card for this stock.


-- Written by Philip van Doorn in Jupiter, Fla.

>Contact by Email.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.
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