After a full year of rises on all the major stock exchanges domestically and abroad, one could imagine that there was no value left in this market. But upon careful inspection, much value remains to be discovered. Those looking for strong showings in the dividend yield, price to book and price/earnings fronts will be pleasantly surprised by the following companies, each of which possesses top-tier valuations in those categories.

IN PICTURES: 10 Ways To Prepare For Nature's Worst

And perhaps it's no surprise that at a time when banks are less than forthcoming with loans, that the majority of companies listed below are in that exact field - of financing otherwise difficult projects.

Loans to Motels and Restaurants
PMC Commercial Trust (AMEX:PCC) is in the commercial loan business, primarily to small businesses in the hospitality industry. The company trades with a P/E of 11.48 and has an annual yield of 8.55%. Price-to-book on the shares is 0.52.

PMC Stock is up over 40% in the last year, worse than the REIT sector as whole, which rose more than 115%, as measured by the SPDR DJ Wilshire REIT (ETF) (NYSE:RWR).

Walter Investment Management Corp. (AMEX:WAC) provides sub-prime and non-conforming loans to residential homeowners in the southeastern U.S. The stock trades with a P/E of just 2.61 and carries a yield of 12.41% per annum. Price-to-book for the shares is 0.73.

Chinese Dividend Tubes
WSP Holdings Ltd. (NYSE:WH) is in the oil services manufacturing business. The company makes a wide variety of drilling, casing and tubing pipes for use in the exploration and extraction of crude oil and gas products. The company is uniquely situated as an American enterprise, with all its principal operations domiciled in China.

WSP offers a current dividend yield of better than 10% annually and trades with a multiple of just 6.42-times last year's earnings. Price-to-book on the shares is just 0.72, and price-to-sales is a mere 0.42.

For the year, though, the company's shares have failed to attract consistent buying. WH shares lost 12.50% in the last twelve months. That compares unfavorably with the oil services sector in general as represented by the Oil Service HOLDRs ETF (NYSE:OIH), which was up better than 56% over the same period. Investors who create their portfolios based on theories of mean reversion should take note of this stock

The Bottom Line
Fundamentals are to be found in this market, but only where most investors are too frightened to tread - the dreaded real estate sector. But for those with a more enterprising spirit (and a dash of risk appetite), the above three companies compare quite favorably. (For further reading on fundamental analysis, check out Pick Stocks Like Peter Lynch and Blending Technical And Fundamental Analysis.)

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

Related Articles
  1. Mutual Funds & ETFs

    ETF Analysis: ProShares Ultra Nasdaq Biotechnology

    Find out information about the ProShares Ultra Nasdaq Biotechnology exchange-traded fund, and learn detailed analysis of its characteristics and suitability.
  2. Mutual Funds & ETFs

    ETF Analysis: Direxion Daily S&P Biotech Bull 3X

    Learn more about the Direxion Daily S&P Biotech Bull 3x exchange-traded fund, a new triple-leveraged ETF tracking biotechnology equities.
  3. Mutual Funds & ETFs

    ETF Analysis: First Trust Health Care AlphaDEX

    Learn more about the First Trust Health Care AlphaDEX exchange-traded fund, an indexed fund that uses an advanced stock selection methodology.
  4. Investing

    Redefining the Stop-Loss

    Using Stop-losses for trading doesn’t mean ‘losing money’, but instead think about the money you'll start saving once you learn how they work.
  5. Mutual Funds & ETFs

    ETF Analysis: PowerShares FTSE RAFI Emerging Mkts

    Learn more about the PowerShares FTSE RAFI Emerging Markets ETF, a fundamentally weighted fund that tracks emerging market equities.
  6. Mutual Funds & ETFs

    ETF Analysis: iShares Cali AMT-Free Muni Bond

    Learn more about the iShares California AMT-Free Municipal Bond exchange-traded fund, a popular tax-advantaged ETF that dominates its category.
  7. Fundamental Analysis

    10 Major Companies Tied to the Apple Supply Chain

    Apple has one of the best supply-chain models. Here are some of the top businesses involved, and the benefits and challenges for all.
  8. Mutual Funds & ETFs

    ETF Analysis: SPDR S&P Emerging Markets Dividend

    Learn more about the SDPR S&P Emerging Markets Dividend Fund, a yield-focused exchange-traded fund tracking global emerging economies.
  9. Mutual Funds & ETFs

    ETF Analysis: First Trust Dow Jones Global Sel Div

    Find out about the First Trust Dow Jones Global Select Dividend Index Fund, and learn detailed information about characteristics and suitability of the fund.
  10. Mutual Funds & ETFs

    ETF Analysis: U.S 12 Month Natural Gas

    Learn about the United States 12 Month Natural Gas Fund, an exchange-traded fund that invests in 12-month futures contracts for natural gas.
  1. Equity

    The value of an asset less the value of all liabilities on that ...
  2. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  3. Profit Margin

    A category of ratios measuring profitability calculated as net ...
  4. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis ...
  5. Debt Ratio

    A financial ratio that measures the extent of a company’s or ...
  6. Price-Earnings Ratio - P/E Ratio

    The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing ...
  1. Can mutual funds invest in IPOs?

    Mutual funds can invest in initial public offerings (IPOS). However, most mutual funds have bylaws that prevent them from ... Read Full Answer >>
  2. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  3. What is the formula for calculating compound annual growth rate (CAGR) in Excel?

    The compound annual growth rate, or CAGR for short, measures the return on an investment over a certain period of time. Below ... Read Full Answer >>
  4. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  5. When does the fixed charge coverage ratio suggest that a company should stop borrowing ...

    Since the fixed charge coverage ratio indicates the number of times a company is capable of making its fixed charge payments ... Read Full Answer >>
  6. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>

You May Also Like

Trading Center

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!