Last night I was at the Towson University International Markets Summit.  I’m grateful to the students for inviting me, as it is an honor.  During the presentation, I mentioned the book “Accounting for Value” by Stephen Penman. I reviewed the book two years ago.  A great book, and one that should lead readers to modify their views on value investing.

But one aspect of the book was easy to implement, he cited his paper that you can read here, Returns to Buying Earnings and Book Value: Accounting for Growth and Risk.  Buy the stocks that are the cheapest as measured by the highest quintiles of book value to price, and trailing twelve month earnings per share to price.

I ran this analysis for all US-traded stocks with over $100 million of market capitalization.  Here are the results:

Company Ticker Industry Country B/P E/P
Petrobras Argentina SA ADR PZE 0606 – Oil & Gas – Integrated Argentina 1.26 7.95
Pampa Energia S.A. (ADR) PAM 1203 – Electric Utilities Argentina 0.83 11.41
OMV AG (ADR) OMVKY 0609 – Oil & Gas Operations Austria 1.13 11.33
Validus Holdings, Ltd. VR 0709 – Insurance (Life) Bermuda 1 13.3
Everest Re Group Ltd RE 0715 – Insurance (Property & Casualty) Bermuda 0.88 15.35
Maiden Holdings, Ltd. MHLD 0715 – Insurance (Property & Casualty) Bermuda 0.93 10.11
Montpelier Re Holdings Ltd. MRH 0715 – Insurance (Property & Casualty) Bermuda 0.99 11.83
Axis Capital Holdings Limited AXS 0715 – Insurance (Property & Casualty) Bermuda 1.01 13.2
Platinum Underwriters Holdings PTP 0715 – Insurance (Property & Casualty) Bermuda 1.02 11.25
White Mountains Insurance Grou WTM 0715 – Insurance (Property & Casualty) Bermuda 1.07 8.49
Aspen Insurance Holdings Limit AHL 0715 – Insurance (Property & Casualty) Bermuda 1.12 9.61
Assured Guaranty Ltd. AGO 0715 – Insurance (Property & Casualty) Bermuda 1.18 18.59
Partnerre Ltd PRE 0715 – Insurance (Property & Casualty) Bermuda 1.23 10.75
Argo Group International Holdi AGII 0715 – Insurance (Property & Casualty) Bermuda 1.27 11.55
Endurance Specialty Holdings L ENH 0715 – Insurance (Property & Casualty) Bermuda 1.31 12.55
Gerdau SA (ADR) GGB 0121 – Iron & Steel Brazil 1.32 6.84
Gafisa SA (ADR) GFA 0215 – Construction Services Brazil 2.04 15.52
Petroleo Brasileiro Petrobras PBR 0606 – Oil & Gas – Integrated Brazil 1.67 13.2
Telefonica Brasil SA (ADR) VIV 0915 – Communications Services Brazil 0.85 7.58
Companhia de Saneamento Basico SBS 1209 – Water Utilities Brazil 0.89 8.57
Endeavour Silver Corp EXK 0118 – Gold & Silver Canada 0.89 9.9
Teck Resources Ltd (USA) TCK 0124 – Metal Mining Canada 1.33 6.84
TransGlobe Energy Corporation TGA 0609 – Oil & Gas Operations Canada 0.85 10.03
Granite Real Estate Investment GRP.U 0933 – Real Estate Operations Canada 0.87 7.53
Brookfield Office Properties I BPO 0933 – Real Estate Operations Canada 1.08 10.08
Boardwalk REIT (USA) BOWFF 0933 – Real Estate Operations Canada 1.14 11.54
Greenlight Capital Re, Ltd. GLRE 0715 – Insurance (Property & Casualty) Cayman Islands 0.9 19.45
Sinopec Shanghai Petrochemical SHI 0103 – Chemical Manufacturing China 1.52 11
Yongye International, Inc YONG 0103 – Chemical Manufacturing China 1.65 43.36
China XD Plastics Co Ltd CXDC 0109 – Containters & Packaging China 1.13 22.71
Lihua International Inc LIWA 0127 – Misc. Fabricated Products China 2.31 41.21
Xinyuan Real Estate Co., Ltd. XIN 0215 – Construction Services China 5.22 42.83
China Automotive Systems, Inc. CAAS 0415 – Auto & Truck Parts China 0.99 11.04
China Petroleum & Chemical Cor SNP 0609 – Oil & Gas Operations China 0.87 10.11
Concord Medical Services Hldg CCM 0806 – Healthcare Facilities China 3.06 12.45
China Telecom Corporation Limi CHA 0915 – Communications Services China 1.17 7.03
Xueda Education Group (ADR) XUE 0969 – Schools China 0.84 6.63
Changyou.Com Ltd (ADR) CYOU 1018 – Computer Services China 1.23 20.92
Nam Tai Electronics, Inc. NTE 1024 – Electronic Instruments & Controls China 1.11 21.58
Jinpan International Limited JST 1024 – Electronic Instruments & Controls China 1.7 13.36
Semiconductor Manufacturing In SMI 1033 – Semiconductors China 0.96 8.06
China Eastern Airlines Corp. L CEA 1106 – Airline China 1.05 12.11
China Southern Airlines Co Ltd ZNH 1106 – Airline China 1.7 13.19
Guangshen Railway Co. Ltd (ADR GSH 1112 – Railroads China 1.34 6.64
Axa SA (ADR) AXAHY 0709 – Insurance (Life) France 1.19 9.46
Volkswagen AG (ADR) VLKAY 0412 – Auto & Truck Manufacturers Germany 0.94 9.73
Allianz SE (ADR) AZSEY 0715 – Insurance (Property & Casualty) Germany 0.92 11.08
E.ON SE (ADR) EONGY 1203 – Electric Utilities Germany 1.28 8.17
National Bank of Greece (ADR) NBG 0727 – Regional Banks Greece 2 131.03
Capital Product Partners L.P. CPLP 1118 – Water Transportation Greece 0.83 10.36
Safe Bulkers, Inc. SB 1118 – Water Transportation Greece 0.83 11.99
StealthGas Inc. GASS 1118 – Water Transportation Greece 1.32 9.08
Navios Maritime Holdings Inc. NM 1118 – Water Transportation Greece 1.32 13.4
Sun Hung Kai Properties Limite SUHJY 0215 – Construction Services Hong Kong 1.44 15.22
Hysan Development Company Limi HYSNY 0215 – Construction Services Hong Kong 1.66 20.18
Tai Cheung Holdings Ltd (ADR) TAICY 0215 – Construction Services Hong Kong 2.11 34.38
Le Gaga Holdings Ltd ADR GAGA 0509 – Crops Hong Kong 1.55 14.63
Bank of East Asia Ltd. (ADR), BKEAY 0727 – Regional Banks Hong Kong 0.85 8.78
Iao Kun Group Holding Co Ltd IKGH 0912 – Casinos & Gaming Hong Kong 1.36 12.89
Cheung Kong (Holdings) Limited CHEUY 0933 – Real Estate Operations Hong Kong 1.16 11.07
Seaspan Corporation SSW 1118 – Water Transportation Hong Kong 1.05 15.2
Magyar Telekom Tavkozlesi Nyrt MYTAY 0915 – Communications Services Hungary 1.34 6.66
XL Group plc XL 0715 – Insurance (Property & Casualty) Ireland 1.12 11.72
Fly Leasing Ltd(ADR) FLY 0939 – Rental & Leasing Ireland 1.3 17.39
Ellomay Capital Ltd. ELLO 1033 – Semiconductors Israel 0.93 10.95
FUJIFILM Holdings Corp. (ADR) FUJIY 0112 – Fabricated Plastic & Rubber Japan 1.55 6.64
Kobe Steel, Ltd. (ADR) KBSTY 0121 – Iron & Steel Japan 1.47 14.7
Mitsui & Co Ltd (ADR) MITSY 0218 – Misc. Capital Goods Japan 1.33 13.26
Wacoal Holdings Corporation (A WACLY 0403 – Apparel/Accessories Japan 1.45 7.14
Toyota Motor Corp (ADR) TM 0412 – Auto & Truck Manufacturers Japan 0.82 10.5
Honda Motor Co Ltd (ADR) HMC 0412 – Auto & Truck Manufacturers Japan 0.92 7.61
Nissan Motor Co., Ltd. (ADR) NSANY 0412 – Auto & Truck Manufacturers Japan 1.11 10.04
Nomura Holdings, Inc. (ADR) NMR 0718 – Investment Services Japan 1.09 10.18
Mizuho Financial Group Inc. (A MFG 0727 – Regional Banks Japan 1.13 14.9
Sumitomo Mitsui Financial Grp, SMFG 0727 – Regional Banks Japan 1.28 16.67
Mitsubishi UFJ Financial Group MTU 0727 – Regional Banks Japan 1.53 13.67
Nippon Telegraph & Telephone C NTT 0915 – Communications Services Japan 1.39 8.93
ORIX Corporation (ADR) IX 0939 – Rental & Leasing Japan 0.98 7.59
Ternium S.A. (ADR) TX 0121 – Iron & Steel Luxembourg 0.89 7.61
ING Groep NV (ADR) ING 0709 – Insurance (Life) Netherlands 1.14 9.46
VimpelCom Ltd (ADR) VIP 0915 – Communications Services Netherlands 0.93 13.67
ASM International NV (ADR) ASMI 1033 – Semiconductors Netherlands 1.01 74.95
Petroleum Geo-Services ASA (AD PGSVY 0612 – Oil Well Services & Equipment Norway 0.81 9.85
Banco Latinoamericano Comerc E BLX 0727 – Regional Banks Panama 0.85 8.39
Compania de Minas Buenaventura BVN 0118 – Gold & Silver Peru 1.18 10.05
OFG Bancorp OFG 0727 – Regional Banks Puerto Rico 0.93 11.04
Popular Inc BPOP 0727 – Regional Banks Puerto Rico 1.52 19.77
Triple-S Management Corp. GTS 0806 – Healthcare Facilities Puerto Rico 1.79 12.52
LUKOIL (ADR) LUKOY 0606 – Oil & Gas – Integrated Russian Federation 1.91 19.08
China Yuchai International Lim CYD 0218 – Misc. Capital Goods Singapore 1.2 15.34
Net 1 UEPS Technologies Inc UEPS 0703 – Consumer Financial Services South Africa 0.91 6.79
POSCO (ADR) PKX 0121 – Iron & Steel South Korea 1.72 6.97
Shinhan Financial Group Co., L SHG 0727 – Regional Banks South Korea 1.24 8.42
Woori Finance Holdings Co., Lt WF 0727 – Regional Banks South Korea 1.91 9.86
SK Telecom Co., Ltd. (ADR) SKM 0915 – Communications Services South Korea 0.89 11.87
Repsol SA (ADR) REPYY 0606 – Oil & Gas – Integrated Spain 1.06 7.93
Transocean LTD RIG 0612 – Oil Well Services & Equipment Switzerland 1.14 9.54
ACE Limited ACE 0715 – Insurance (Property & Casualty) Switzerland 0.84 10.92
Allied World Assurance Co Hold AWH 0715 – Insurance (Property & Casualty) Switzerland 1 11.73
United Microelectronics Corp ( UMC 1033 – Semiconductors Taiwan 1.3 8.02
Silicon Motion Technology Corp SIMO 1033 – Semiconductors Taiwan 1.96 19.74
BP plc (ADR) BP 0606 – Oil & Gas – Integrated United Kingdom 0.85 15.1
Noble Corporation PLC NE 0612 – Oil Well Services & Equipment United Kingdom 1.08 10.05
Subsea 7 SA (ADR) SUBCY 0612 – Oil Well Services & Equipment United Kingdom 1.09 7.02
ENSCO PLC ESV 0612 – Oil Well Services & Equipment United Kingdom 1.11 12.2
Rowan Companies PLC RDC 0612 – Oil Well Services & Equipment United Kingdom 1.3 6.71
HSBC Holdings plc (ADR) HSBC 0727 – Regional Banks United Kingdom 0.94 8.09
Vodafone Group Plc (ADR) VOD 0915 – Communications Services United Kingdom 1.47 31.68
J Sainsbury plc (ADR) JSAIY 0957 – Retail (Grocery) United Kingdom 0.96 10.57
Global Ship Lease, Inc. GSL 1118 – Water Transportation United Kingdom 2.11 16.62
Cliffs Natural Resources Inc CLF 0124 – Metal Mining United States 1.87 12.76
M.D.C. Holdings, Inc. MDC 0215 – Construction Services United States 0.91 23.28
M/I Homes Inc MHO 0215 – Construction Services United States 0.92 27.21
URS Corp URS 0215 – Construction Services United States 1.16 7.02
Mestek, Inc. MCCK 0218 – Misc. Capital Goods United States 0.98 11.53
General Motors Company GM 0412 – Auto & Truck Manufacturers United States 0.83 7.98
Rocky Brands Inc RCKY 0418 – Footwear United States 1.21 6.82
Johnson Outdoors Inc. JOUT 0430 – Recreational Products United States 0.87 7.83
LeapFrog Enterprises, Inc. LF 0430 – Recreational Products United States 0.89 17.58
Yasheng Group HERB 0509 – Crops United States 11.77 70.4
Seaboard Corporation SEB 0515 – Food Processing United States 0.82 6.77
John B. Sanfilippo & Son, Inc. JBSS 0515 – Food Processing United States 0.84 8.55
Omega Protein Corporation OME 0515 – Food Processing United States 1.01 12.24
Ennis, Inc. EBF 0518 – Office Supplies United States 0.92 8.43
ACCO Brands Corporation ACCO 0518 – Office Supplies United States 1.01 11.07
Universal Corp UVV 0524 – Tobacco United States 0.93 10.8
Hess Corp. HES 0609 – Oil & Gas Operations United States 0.86 12.86
Approach Resources Inc. AREX 0609 – Oil & Gas Operations United States 0.93 9.48
Equal Energy Ltd. (USA) EQU 0609 – Oil & Gas Operations United States 0.96 9.38
Sandridge Mississippian Trust SDT 0609 – Oil & Gas Operations United States 1.49 63.59
PHI Inc. PHII 0612 – Oil Well Services & Equipment United States 0.85 8.96
Medallion Financial Corp TAXI 0703 – Consumer Financial Services United States 0.94 9.13
CIT Group Inc. CIT 0703 – Consumer Financial Services United States 0.96 7.26
Goldman Sachs Group Inc GS 0703 – Consumer Financial Services United States 0.97 10.16
Ellington Financial LLC EFC 0703 – Consumer Financial Services United States 1.04 13.7
Walter Investment Management C WAC 0703 – Consumer Financial Services United States 1.11 23.94
Chimera Investment Corporation CIM 0703 – Consumer Financial Services United States 1.12 11.58
PHH Corporation PHH 0703 – Consumer Financial Services United States 1.19 9.68
EZCORP Inc EZPW 0703 – Consumer Financial Services United States 1.58 7.55
WellPoint Inc WLP 0706 – Insurance (Accident & Health) United States 0.89 9.52
Employers Holdings, Inc. EIG 0706 – Insurance (Accident & Health) United States 0.93 10.46
Reinsurance Group of America I RGA 0706 – Insurance (Accident & Health) United States 1.08 7.49
American Equity Investment Lif AEL 0709 – Insurance (Life) United States 0.86 16.77
Protective Life Corp. PL 0709 – Insurance (Life) United States 0.92 9.76
FBL Financial Group FFG 0709 – Insurance (Life) United States 0.96 9.73
Unum Group UNM 0709 – Insurance (Life) United States 0.98 9.55
Assurant, Inc. AIZ 0709 – Insurance (Life) United States 1 9.67
Lincoln National Corporation LNC 0709 – Insurance (Life) United States 1.07 9.76
Symetra Financial Corporation SYA 0709 – Insurance (Life) United States 1.23 8.64
CNO Financial Group Inc CNO 0709 – Insurance (Life) United States 1.29 12.39
Imperial Holdings, Inc. IFT 0709 – Insurance (Life) United States 1.38 37.03
National Western Life Insuranc NWLI 0709 – Insurance (Life) United States 1.63 10.85
Genworth Financial Inc GNW 0709 – Insurance (Life) United States 1.72 6.87
Fortegra Financial Corp FRF 0712 – Insurance (Miscellaneous) United States 1.28 8.18
Allstate Corporation, The ALL 0715 – Insurance (Property & Casualty) United States 0.82 8.75
HCC Insurance Holdings, Inc. HCC 0715 – Insurance (Property & Casualty) United States 0.82 8.92
State Auto Financial Corp STFC 0715 – Insurance (Property & Casualty) United States 0.83 6.92
Stewart

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