(GuruFocus, November 20, 2009) When I was reviewing the portfolio of Dodge & Cox, I stump on a small detail of the company’s funds. Take the flagship Dodge & Cox Stock Fund for example, as of September 30, 2009, the fund’s 83 stocks have an average forward Price-to-Earning ratio of 13.2, that is compared to S&P 500’s 21.4. The firm’s International Stock Fund and Global Stock Fund exhibit less contrast to the benchmark MSCI EAFE index. That is not because the funds’ stocks have much higher PE ratios, but rather, the universe of stock worldwide has smaller PE ratio that that of the US stocks.
With that in mind, I set out to find out the lowest PE stocks in Dodge & Cox’s portfolio. Here is the list:
Dodge and Cox owns 203 million shares. The stock is one of its top holdings.
NEWS CORPORATION is a diversified entertainment company with operations in eight industry segments: filmed entertainment; television; cable network programming; direct broadcast satellite television; magazines and inserts; newspapers and information services; book publishing; and other. The activities of News Corporation are conducted principally in the United States Continental Europe the United Kingdom Australia Asia and the Pacific Basin. News Corp. has a market cap of $15.45 billion; its shares were traded at around $0 with a P/E ratio of 6.86 and P/S ratio of 0.47. The dividend yield of News Corp. stocks is 1.41%. News Corp. had an annual average earning growth of 17.2% over the past 5 years.
Dodge & Cox[/url] owns a miniscule 13,100 shares. It used to own a lot more (23 million shares as of 1Q07) but has since sold down to next to nothing.
UnumProvident is the industry leader in disability income protection and one of the top providers of supplemental benefits in the nation. The company's subsidiaries offer comprehensive insurance solutions to help protect against the financial effects of accident, illness or death. Below are the countries in which we operate, and the companies that offer products in each country. Unum Group has a market cap of $6.34 billion; its shares were traded at around $19.13 with a P/E ratio of 7.5 and P/S ratio of 0.7. The dividend yield of Unum Group stocks is 1.6%.
Dodge & Cox[/url] owns a small stake of 62,015 shares.
Eli Lilly and Company discovers, develops, manufactures, and sells products in one significant business segment -pharmaceutical products. The company directs its research efforts primarily toward the search for products to diagnose, prevent and treat human diseases. The company also conducts research to find products to treat diseases in animals and to increase the efficiency of animal food production. Eli Lilly And Company has a market cap of $41.5 billion; its shares were traded at around $36.12 with a P/E ratio of 7.9 and P/S ratio of 2. The dividend yield of Eli Lilly And Company stocks is 5.5%. Eli Lilly And Company had an annual average earning growth of 4.4% over the past 10 years. GuruFocus rated Eli Lilly And Company the business predictability rank of 4.5-star.
Dodge & Cox[/url] owns 331,674 shares.
Chubb Corporation is a holding company with subsidiaries principally engaged in the property and casualty insurance business. The property and casualty insurance subsidiaries provide insurance coverages principally in the United States, Canada, Europe and parts of Australia, Latin America and the Far East. The Chubb Corp. has a market cap of $17.53 billion; its shares were traded at around $50.09 with a P/E ratio of 8.3 and P/S ratio of 1.5. The dividend yield of The Chubb Corp. stocks is 2.8%. The Chubb Corp. had an annual average earning growth of 7.8% over the past 5 years.
Dodge & Cox owns 35.4 million shares.
Sanofi-Synth?labo is a leading global pharmaceutical company. Sanofiaventis has a market cap of $99.14 billion; its shares were traded at around $37.68 with a P/E ratio of 8.3 and P/S ratio of 2.4. The dividend yield of Sanofiaventis stocks is 3%.
Conclusion
Without suspension, the lowest companies reside in the Pharmaceutical sector (LLY, PFE, and SNY).
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With that in mind, I set out to find out the lowest PE stocks in Dodge & Cox’s portfolio. Here is the list:
News Corp. (NWS-A) -- P/E = 6.86
The p/e ratio of News Corp. (NWS-A) stocks is 6.86.Dodge and Cox owns 203 million shares. The stock is one of its top holdings.
NEWS CORPORATION is a diversified entertainment company with operations in eight industry segments: filmed entertainment; television; cable network programming; direct broadcast satellite television; magazines and inserts; newspapers and information services; book publishing; and other. The activities of News Corporation are conducted principally in the United States Continental Europe the United Kingdom Australia Asia and the Pacific Basin. News Corp. has a market cap of $15.45 billion; its shares were traded at around $0 with a P/E ratio of 6.86 and P/S ratio of 0.47. The dividend yield of News Corp. stocks is 1.41%. News Corp. had an annual average earning growth of 17.2% over the past 5 years.
Unum Group (UNM, Financial) -- P/E = 7.5
Dodge & Cox[/url] owns a miniscule 13,100 shares. It used to own a lot more (23 million shares as of 1Q07) but has since sold down to next to nothing.
UnumProvident is the industry leader in disability income protection and one of the top providers of supplemental benefits in the nation. The company's subsidiaries offer comprehensive insurance solutions to help protect against the financial effects of accident, illness or death. Below are the countries in which we operate, and the companies that offer products in each country. Unum Group has a market cap of $6.34 billion; its shares were traded at around $19.13 with a P/E ratio of 7.5 and P/S ratio of 0.7. The dividend yield of Unum Group stocks is 1.6%.
Eli Lilly and Company (LLY, Financial) -- P/E = 7.9
Dodge & Cox[/url] owns a small stake of 62,015 shares.
Eli Lilly and Company discovers, develops, manufactures, and sells products in one significant business segment -pharmaceutical products. The company directs its research efforts primarily toward the search for products to diagnose, prevent and treat human diseases. The company also conducts research to find products to treat diseases in animals and to increase the efficiency of animal food production. Eli Lilly And Company has a market cap of $41.5 billion; its shares were traded at around $36.12 with a P/E ratio of 7.9 and P/S ratio of 2. The dividend yield of Eli Lilly And Company stocks is 5.5%. Eli Lilly And Company had an annual average earning growth of 4.4% over the past 10 years. GuruFocus rated Eli Lilly And Company the business predictability rank of 4.5-star.
Pfizer Inc (PFE, Financial) -- P/E = 8.3
Dodge & Cox owns 89.8 million shares.
Pfizer Inc is a research-based, global pharmaceutical company that discovers and develops innovative, value-added products that improve the quality of life of people around the world and help them enjoy longer, healthier, and more productive lives. Pfizer has three business segments: health care, animal health and consumer health care. Its products are available in numerous countries. (Company Press Release) Pfizer Inc has a market cap of $122.23 billion; its shares were traded at around $18.11 with a P/E ratio of 8.3 and P/S ratio of 2.5. The dividend yield of Pfizer Inc stocks is 3.6%. Pfizer Inc had an annual average earning growth of 11% over the past 10 years. GuruFocus rated Pfizer Inc the business predictability rank of 2.5-star.The Chubb Corp. (CB, Financial) -- P/E = 8.3
Dodge & Cox[/url] owns 331,674 shares.
Chubb Corporation is a holding company with subsidiaries principally engaged in the property and casualty insurance business. The property and casualty insurance subsidiaries provide insurance coverages principally in the United States, Canada, Europe and parts of Australia, Latin America and the Far East. The Chubb Corp. has a market cap of $17.53 billion; its shares were traded at around $50.09 with a P/E ratio of 8.3 and P/S ratio of 1.5. The dividend yield of The Chubb Corp. stocks is 2.8%. The Chubb Corp. had an annual average earning growth of 7.8% over the past 5 years.
SanofiAventis (SNY, Financial) -- P/E = 8.3
Dodge & Cox owns 35.4 million shares.
Sanofi-Synth?labo is a leading global pharmaceutical company. Sanofiaventis has a market cap of $99.14 billion; its shares were traded at around $37.68 with a P/E ratio of 8.3 and P/S ratio of 2.4. The dividend yield of Sanofiaventis stocks is 3%.
Conclusion
Without suspension, the lowest companies reside in the Pharmaceutical sector (LLY, PFE, and SNY).
GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett and managers with Dodge & Cox for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
