Capital One's shares have returned 7% this year, following a 36% return during 2012. The shares trade for 9.3 times the consensus 2014 earnings estimate of $6.66 a share, among analysts polled by Thomson Reuters. Here's how that forward price-to-earnings compares to the "big four" U.S. banking club:
- Wells Fargo (WFC) closed at $40.20, trading for 10.6 times the consensus 2014 EPS estimate of $3.81.
- Bank of America (BAC) closed at $13.51, trading for 10.5 times the consensus 2014 EPS estimate of $1.29.
- Shares of Citigroup (C) closed at $51.60, trading for 9.7 times the consensus 2014 EPS estimate of $5.32.
- Among the big four, JPMorgan Chase (JPM) trades at the lowest forward price-to-earnings ratio. The shares closed at $52.29 Monday, trading for 8.8 times the consensus 2014 EPS estimate of $5.94. JPMorgan Chase will hold its annual meeting on Tuesday, with all eyes on a non-binding proxy vote on whether or not James Dimon's dual roles as CEO and chairman should be separated.
Considering the company may still be few years away from "normalized earnings," as it continues, with great success, to work through investors' mortgage repurchase demands, Bank of America's shares are looking a bit frothy. The shares have returned 16% year-to-date, following a 110% return during 2012. KBW analyst Christopher Mutascio on Sunday downgraded Bank of America to a "market perform" rating from "outperform," because the stock had come close to his price target of $13.50. "We are more than happy to take some profits off the table," Mutascio wrote in a note to investors, adding "we are in a broad-based rally in the banking sector that we admittedly don't fully understand, as it is not supported by any signs/catalysts for improved revenue growth."
-- Written by Philip van Doorn in Jupiter, Fla. >Contact by Email. Follow @PhilipvanDoorn