Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, discount brokerage Charles Schwab (NYSE: SCHW ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Schwab's business and see what CAPS investors are saying about the stock right now.
Schwab facts
| Headquarters (Founded) |
San Francisco (1971) |
| Market Cap |
$15.95 billion |
| Industry |
Investment banking and brokerage |
| Trailing-12-Month Revenue |
$4.59 billion |
| Management |
CEO Walter Bettinger II (since 2008)
CFO Joseph Martinetto (since 2007) |
| Return on Equity (Average, Past 3 Years) |
15.6% |
| Dividend Yield |
1.9% |
| Competitors |
E*TRADE Financial (Nasdaq: ETFC ) TD AMERITRADE (Nasdaq: AMTD ) T. Rowe Price Group (Nasdaq: TROW ) |
Sources: S&P Capital IQ, Morningstar, and Motley Fool CAPS.
On CAPS, 94% of the 831 members who have rated Schwab believe the stock will outperform the S&P 500 going forward. These bulls include reidabook3 and astephan2525.
Just last month, reidabook3 tapped Schwab as an attractive value pick:
Undeserved beating recently. Still making respectable earnings despite the low interest rates. They should see a little boost from brokerage fees from all the recent high volume. I like them over TD Ameritrade since they've now got [OptionsXpress]. I don't think this has been fairly priced in yet.
In fact, according to Morningstar, Schwab currently sports a PEG ratio of just 0.7. That represents a slight discount to competitors like E*TRADE (1.1), TD AMERITRADE (0.9), and T. Rowe Price (1.5).
CAPS member astephan elaborates on the Schwab bull case:
Among consumer finance companies and brokerages I think Schwab stands out as a stable, honest brand with good customer service and reasonable prices. They are the new Merrill Lynch now that Merrill Lynch ... lost the right to consider itself as stable and solid as a bull.
What do you think about Schwab, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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