Comparison of shares – Banks and Property developers

After a significant beating in the past few weeks, how was share performance of counters in their respective industry sectors of banking and property developers?

The table below shows selective counters of three local banks and well-known property developers.

The columns were: closing share price as at 19 August, book value per share, Price to book ratio, dividend yield and Price Earning ratio (based on 2010 data).

Stock Name

Price     19 Aug

Book value per share

PriceToBook

Div Yield (%)

PE ratio

DBS GRP HLDGS

13.51

11.243

1.202

4.145

10.673

UOB LTD

18.54

12.285

1.509

3.236

11.285

OCBC

8.75

5.573

1.570

3.429

18.659

 

SPORE LAND

6.40

9.998

0.640

3.125

3.014

CAPITALAND

2.39

3.319

0.720

2.510

8.691

UOL LTD

4.56

6.158

0.741

2.193

3.750

KEPPEL LAND

3.00

2.887

1.039

3.000

4.418

CITY DEVT LTD

9.75

6.671

1.462

0.821

9.475

Based on purely historical data of last financial year results, DBS Group Holdings had the lowest Price to Book ratio and Price Earning ratio, cheaper relative to the other banks. DBS’ dividend yield was the highest at 4.145%.

In the case of property developers, Singapore Land, CapitaLand and UOL Ltd had below ONE price-to-book ratio. They were trading below their book value. Keppel Land and City Development were at higher share price per book value, with City Development being the most expensive relatively.

On the basis of earnings data, both CapitaLand and City Development were trading at a significant “premium” over their past earnings records. The price earnings ratio for CapitaLand was 8.691 times and for City Development was 9.475 times. When comparing dividend yield between them, CapitaLand had a higher dividend yield at 2.51% and City Development was 0.821%.

Investing in local shares carries risk in this uncertain climate. The shares may appear cheap but no one can be certain how the counters will be performing in the next few months. Provided that you have your spare cash, it can be hard to stomach the volatility of share movement.

Copyright © 2011, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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2 Responses to Comparison of shares – Banks and Property developers

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  2. Jospeh Bemrose says:

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