Financial Stocks: What Drives Them, What To Check
Updated October 31, 2026. 77 stocks in the group.
On October 31, 2026, this site tracks 77 financial stocks with a combined market value of $8.67T, about 12.5% of the 503 stocks it covers. Their median P/E is 13.7 against 23.5 for all tracked stocks, and 71 stocks pay a dividend. The largest are BRK.B, JPM, V and MA. This page shows what the data says about the group and what drives it; it does not say which stock to pick.
What is in the Financials group?
77 stocks in 3 industries.
| Industry | Stocks | Combined market value | Median P/E | Largest |
|---|---|---|---|---|
| Financial Services | 40 | $5.29T | 22.6 | BRK.B |
| Banking | 14 | $2.23T | 11.2 | JPM |
| Insurance | 23 | $1.15T | 13.6 | CB |
The group follows this site's twelve-sector grouping, shown on the Sector Map. It covers banks, insurers, insurance brokers, asset managers, exchanges, card and payment networks and brokerages. The industry names are the narrow labels in the site's own company data. Market values and P/E come from the weekly screener data as of October 31, 2026.
How do financial stocks compare with the whole market?
Medians for the group against all tracked stocks.
| Measure | Financials | All tracked stocks | The group is |
|---|---|---|---|
| Median P/E | 13.7 | 23.5 | below |
| Median price to book | 2.12 | 4.33 | below |
| Median dividend yield (payers) | 1.92% | 1.91% | above |
| Median net margin | 19.2% | 13.1% | above |
| Median return on equity | 16.5% | 17.4% | below |
Medians ignore stocks with no figure, so a loss-maker has no P/E. On P/E the group sits 42% below the market median. Debt to equity is left out for financials: for a bank, debt and deposits are the raw material, not a measure of strain. A higher P/E means investors pay more per dollar of profit, often because they expect faster growth; it is not a score. See the P/E glossary entry.
Which financial stocks lead on size, price, yield and returns?
Four short lists from the same data.
| Stock | Market value |
|---|---|
| BRK.B Berkshire Hathaway Inc | $1.16T |
| JPM JPMorgan Chase & Co | $900B |
| V Visa Inc | $764B |
| MA Mastercard Inc | $560B |
| BAC Bank of America Corp | $348B |
| Stock | P/E |
|---|---|
| WU Western Union Co | 4.9 |
| ALL Allstate Corp | 4.9 |
| FIS Fidelity National Information Services Inc | 5.7 |
| SYF Synchrony Financial | 7.2 |
| ACGL Arch Capital Group Ltd | 7.7 |
A low P/E can mean a bargain or a business in trouble, and a high yield can be a price that has fallen; check the cause before reading either as good news (why a low P/E can be an illusion). Return on equity is flattered by debt and buybacks.
How strong are the 35 banks and insurers in the group?
Banks and insurers cannot be scored with the usual quality tests, so they have their own screener.
| Measure | Middle value | Companies |
|---|---|---|
| Return on tangible common equity (banks) | 15.7% | 18 |
| Efficiency ratio (banks, lower is better) | 61% | 18 |
| Tangible capital to tangible assets (banks) | 7.1% | 18 |
| Return on equity without AOCI (insurers) | 14.1% | 17 |
| Cost ratio (insurers, lower is better) | 84% | 17 |
| Stock | Return on tangible equity | Efficiency ratio |
|---|---|---|
| BK BNY | 29.7% | 65% |
| SYF Synchrony Financial | 25.1% | 27% |
| JPM JPMorgan Chase & Co | 20.3% | 52% |
| USB US Bancorp | 20.3% | 59% |
| FITB Fifth Third Bancorp | 18.4% | 57% |
The remaining 42 stocks in the group are asset managers, exchanges, brokerages, insurance brokers and payment networks, which the Bank and Insurer Screener does not measure. Formulas: how the ratios are computed.
What drives financial stocks?
The forces behind the group's profits.
Interest rates and the yield curve
Banks earn the gap between what they charge borrowers and what they pay depositors. Higher short-term rates, a steeper curve and stable deposits tend to help that gap; a fast fall in rates or an inverted curve squeezes it.
Credit quality
A bank's profit is what is left after loan losses. In good years the provision for losses is small and profits look strong; in a downturn it is the line that grows fastest. The allowance for credit losses and net charge-offs show how much is being set aside and taken.
Markets and fees
Asset managers, exchanges and brokerages earn fees that rise and fall with asset prices and trading volumes. Their profits are a lever on the market itself.
Underwriting and catastrophes
Insurers earn money twice: on premiums above claims and expenses, and on investing the premiums until claims are paid. Large storms, wildfires and soft pricing years hit the first; interest rates drive the second.
What can go wrong with financial stocks?
The risks to read in the filings.
- Credit cycles: loan losses rise together across a downturn.
- Funding and rate risk: deposits can leave and bond holdings lose value when rates rise.
- Catastrophes: one season can erase a year of underwriting profit.
- Regulation: capital rules decide how much can be paid out.
What to check: Do not use free cash flow or a standard DCF: deposits and policy reserves move cash flow for reasons unrelated to profit. Use return on tangible equity, the efficiency ratio, tangible capital, credit losses and, for insurers, the loss ratio.
Which tools and guides fit financial stocks?
Where to go next on this site.
Which financial stocks does this site track?
Every stock in the group, by industry, each linked to its own page.
Financial Services (40)
| Stock | Market value | P/E | Dividend yield | Return on equity |
|---|---|---|---|---|
| BRK.B Berkshire Hathaway Inc | $1.16T | 13.6 | none | 11.9% |
| V Visa Inc | $764B | 33.8 | 0.67% | 61.3% |
| MA Mastercard Inc | $560B | 34.4 | 0.52% | 232.5% |
| MS Morgan Stanley | $291B | 14.2 | 2.33% | 17.8% |
| GS Goldman Sachs Group Inc | $261B | 11.8 | 2.35% | 17.9% |
| AXP American Express Co | $214B | 17.5 | 1.17% | 35.6% |
| BLK BlackRock Inc | $186B | 27.0 | 1.93% | 11.7% |
| SCHW Charles Schwab Corp | $153B | 14.4 | 1.57% | 20.4% |
| BX Blackstone Inc | $147B | 41.3 | 4.34% | 40.8% |
| SPGI S&P Global Inc | $135B | 27.1 | 0.85% | 17.5% |
| IBKR Interactive Brokers Group Inc | $130B | 110.5 | 0.11% | 20.4% |
| COF Capital One Financial Corp | $123B | 11.3 | 1.75% | 9.7% |
| CME CME Group Inc | $109B | 24.8 | 3.73% | 16.3% |
| ICE Intercontinental Exchange Inc | $93.7B | 23.2 | 1.22% | 13.9% |
| MCO Moody's Corp | $85.3B | 29.6 | 0.83% | 86.4% |
| KKR KKR & Co Inc | $84.7B | 26.9 | 0.98% | 10.3% |
| HOOD Robinhood Markets Inc | $76.6B | 38.6 | none | 20.9% |
| APO Apollo Global Management Inc | $68.4B | 36.5 | 2.00% | 8.6% |
| NDAQ Nasdaq Inc | $58.9B | 28.2 | 1.11% | 17.3% |
| PYPL PayPal Holdings Inc | $47.6B | 10.1 | 1.05% | 23.8% |
| STT State Street Corp | $46.1B | 12.5 | 2.51% | 13.1% |
| XYZ Block Inc | $45.8B | 128.2 | none | 1.6% |
| MSCI MSCI Inc | $44.5B | 32.2 | 1.31% | 108.7% |
| AMP Ameriprise Financial Inc | $43.3B | 11.0 | 1.39% | 61.7% |
| COIN Coinbase Global Inc | $37.9B | n/a | none | -6.9% |
| CBOE Cboe Global Markets Inc | $34.9B | 25.8 | 0.87% | 25.8% |
| NTRS Northern Trust Corp | $30.9B | 13.8 | 2.07% | 17.1% |
| RJF Raymond James Financial Inc | $30.5B | 13.2 | 1.40% | 18.3% |
| ARES Ares Management Corp | $28.6B | 45.0 | 6.71% | 15.2% |
| CPAY Corpay Inc | $26.1B | 22.9 | none | 30.4% |
| FISV Fiserv Inc | $25.8B | 9.2 | none | 10.8% |
| SYF Synchrony Financial | $24.0B | 7.2 | 2.13% | 20.0% |
| GPN Global Payments Inc | $22.8B | n/a | 1.10% | -4.0% |
| TROW T Rowe Price Group Inc | $22.2B | 10.0 | 5.13% | 20.4% |
| FIS Fidelity National Information Services Inc | $19.3B | 5.7 | 4.52% | 22.6% |
| BEN Franklin Resources Inc | $16.1B | 19.9 | 4.30% | 6.8% |
| IVZ Invesco Ltd | $12.2B | n/a | 4.47% | -0.6% |
| FDS Factset Research Systems Inc | $11.4B | 21.4 | 1.44% | 25.6% |
| JKHY Jack Henry & Associates Inc | $11.4B | 22.6 | 1.50% | 23.5% |
| WU Western Union Co | $1.9B | 4.9 | 15.59% | 42.6% |
Banking (14)
| Stock | Market value | P/E | Dividend yield | Return on equity |
|---|---|---|---|---|
| JPM JPMorgan Chase & Co | $900B | 13.6 | 1.92% | 17.9% |
| BAC Bank of America Corp | $348B | 10.8 | 2.80% | 10.7% |
| WFC Wells Fargo & Co | $254B | 11.0 | 2.59% | 12.8% |
| C Citigroup Inc | $205B | 10.6 | 2.66% | 9.2% |
| BK BNY | $94.1B | 15.8 | 1.81% | 13.5% |
| USB US Bancorp | $93.8B | 11.2 | 3.78% | 12.6% |
| PNC PNC Financial Services Group Inc | $91.2B | 11.5 | 3.35% | 12.6% |
| TFC Truist Financial Corp | $58.2B | 11.2 | 4.99% | 8.1% |
| FITB Fifth Third Bancorp | $48.8B | 22.5 | 2.41% | 8.9% |
| MTB M&T Bank Corp | $31.9B | 10.6 | 3.35% | 10.7% |
| HBAN Huntington Bancshares Inc | $31.6B | 12.7 | 3.66% | 8.2% |
| CFG Citizens Financial Group Inc | $27.6B | 12.2 | 3.33% | 8.7% |
| RF Regions Financial Corp | $24.5B | 10.7 | 4.08% | 12.3% |
| KEY KeyCorp | $22.7B | 10.7 | 4.60% | 10.9% |
Insurance (23)
| Stock | Market value | P/E | Dividend yield | Return on equity |
|---|---|---|---|---|
| CB Chubb Limited | $140B | 12.4 | 1.10% | 15.2% |
| PGR Progressive Corp | $135B | 11.5 | 6.05% | 35.4% |
| MRSH Marsh McLennan | $95.4B | 23.6 | 1.88% | 27.2% |
| TRV Travelers Companies Inc | $82.5B | 9.9 | 1.21% | 26.2% |
| AJG Arthur J. Gallagher & Co. | $69.5B | 44.3 | 1.00% | 6.7% |
| AON Aon PLC | $68.8B | 17.6 | 0.96% | 42.6% |
| ALL Allstate Corp | $65.9B | 4.9 | 1.80% | 43.1% |
| MET MetLife Inc | $63.8B | 17.6 | 2.64% | 12.9% |
| AFL Aflac Inc | $62.6B | 12.9 | 1.91% | 16.4% |
| AIG American International Group Inc | $42.8B | 14.4 | 2.32% | 7.3% |
| PRU Prudential Financial Inc | $40.2B | 10.3 | 4.84% | 12.2% |
| ACGL Arch Capital Group Ltd | $36.2B | 7.7 | 0.12% | 19.5% |
| HIG Hartford Insurance Group Inc | $35.7B | 7.7 | 1.86% | 24.1% |
| WTW Willis Towers Watson PLC | $28.7B | 18.3 | 1.25% | 20.0% |
| CINF Cincinnati Financial Corp | $27.9B | 10.5 | 1.97% | 16.5% |
| WRB W. R. Berkley Corp | $26.7B | 14.4 | 1.79% | 19.7% |
| PFG Principal Financial Group Inc | $23.7B | 15.2 | 2.93% | 13.1% |
| L Loews Corp | $23.0B | 13.6 | 0.23% | 9.0% |
| BRO Brown & Brown Inc | $22.9B | 18.8 | 0.98% | 9.7% |
| EG Everest Group Ltd | $15.7B | 8.2 | 2.06% | 12.4% |
| AIZ Assurant Inc | $14.5B | 13.7 | 1.22% | 18.0% |
| GL Globe Life Inc | $12.2B | 10.3 | 0.74% | 20.3% |
| ERIE Erie Indemnity Co | $11.9B | 20.7 | 2.21% | 24.5% |
Frequently asked questions: financial stocks
How many financial stocks does this site track?
77 financial stocks as of October 31, 2026, in 3 industries, with a combined market value of $8.67T. The largest are BRK.B, JPM and V.
What is the median P/E of financial stocks?
13.7, against 23.5 for all 503 tracked stocks (medians, loss-makers excluded). The median dividend yield among payers is 1.92% against 1.91%.
Which financial stocks pay the highest dividends?
WU at 15.59%, ARES at 6.71% and PGR at 6.05%. A high yield can come from a fallen share price, so check coverage on the Sustainable Dividend Screener.
How do you analyze financial stocks?
Do not use free cash flow or a standard DCF: deposits and policy reserves move cash flow for reasons unrelated to profit. Use return on tangible equity, the efficiency ratio, tangible capital, credit losses and, for insurers, the loss ratio. Then compare a company with the group medians on this page rather than with the whole market.
Does this page say which financial stock to buy?
No. It shows what the data says about the group and how to read it. Every figure is as of October 31, 2026 and describes the past. Read the Editorial Standards for how this site handles data.
Where does this data come from?
- Prices, P/E, yield and margins: the site's weekly screener data (market data from Finnhub and Twelve Data); medians skip stocks with no figure.
- Financial statements and scores: each company's own 10-K filings on SEC EDGAR.
- Grouping: the site's twelve-sector grouping (Sector Map); the narrow industry labels come from its company data.
- Method and limits: every figure is shown as published, with its date, and refreshed weekly (data as of October 31, 2026). There is no composite score, and nothing here predicts where a rate goes next. Read the Editorial Standards for how this site handles data.
Educational content only, not investment, currency-trading or tax advice. Exchange rates and interest rates move for reasons no single table captures.