5 Banks Trading With Low Price-Sales Ratios

Walker & Dunlop makes the list

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Apr 19, 2021
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According to the GuruFocus All-In-One Screener, a Premium feature, the following banks were trading with low price-sales ratios as of April 19.

Walker & Dunlop

Shares of Walker & Dunlop Inc. (WD) were trading around $107.96 with a price-sales ratio of 3.10 and a price-earnings ratio of 14.04.

The U.S. commercial real estate finance company has a $3.30 billion market cap. The share price has risen at an annualized rate of 25.83% over the past decade.

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The discounted cash flow calculator gives the stock a fair value of $323.91, suggesting it is undervalued with a 66.67% of margin of safety.

The company's largest guru shareholder is Chuck Royce (Trades, Portfolio) with 0.90% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.47%, Joel Greenblatt (Trades, Portfolio) with 0.01% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.

Ameris Bancorp

On Monday, Ameris Bancorp (ABCB) was trading around $50.64 with a price-sales ratio of 3.25 and a price-earnings ratio of 13.40.

The company, which provides business banking, personal banking, checking, savings, mobile banking and more, has a market cap of $3.52 billion. The stock has risen at an annualized rate of 18.49% over the past 10 years.

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The discounted cash flow calculator gives the stock a fair value of $55.79, suggesting it is undervalued with a 9.23% margin of safety.

With a 0.58% stake, NWQ Managers (Trades, Portfolio) is the company's largest guru shareholder, followed by Bernard Horn (Trades, Portfolio) with 0.16% and Mario Gabelli (Trades, Portfolio) with 0.10%.

Investors Bancorp

Investors Bancorp Inc. (ISBC) was trading around $14.88 on Monday with a price-sales ratio of 4.29 and a price-earnings ratio of 15.83.

The holding company has a market cap of $3.63 billion. The stock has risen at an annualized rate of 11.97% over the past decade.

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The discounted cash flow calculator gives the stock a fair value of $25.64, suggesting it is undervalued with a 41.97% of margin of safety.

The company's largest guru shareholder is Michael Price (Trades, Portfolio) with 0.52% of outstanding shares, followed by HOTCHKIS & WILEY with 0.45% and Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.21%

Umpqua Holdings

Umpqua Holdings Corp. (UMPQ) was trading around $18.19 with a price-sales ratio of 3.09 and a price-book ratio of 1.49.

The bank has a market cap of $4.01 billion. The stock has risen at an annualized rate of 8.11% over the past decade.

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With a 1.96% stake, Barrow, Hanley, Mewhinney & Strauss is the company's largest guru shareholder, followed by Richard Pzena (Trades, Portfolio) with 1.32% and Ken Fisher (Trades, Portfolio) with 1.22%.

BankUnited

BankUnited Inc. (BKU) shares were trading around $44.10 with a price-sales ratio of 4.58.

The bank holding company has a $4.11 billion market cap. The share price has risen at an annualized rate of 5.99% over the past decade.

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The discounted cash flow calculator gives the stock a fair value of $41.29, suggesting it is overpriced by 6.83%.

The company's largest guru shareholder is Diamond Hill Capital (Trades, Portfolio) with 2.48% of outstanding shares, followed by Royce with 0.72%, Richard Snow (Trades, Portfolio) with 0.36% and HOTCHKIS & WILEY with 0.22%.

Disclosure: I do not own any stocks mentioned.

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