ANZ has been the ugly duckling this year falling over -12% while WBC is currently up +1% and not surprisingly it’s the cheapest of the “Big 4 Banks” trading on an Est P/E of 11.2x with an Est yield of 6% over the next 12-months i.e. a theoretically higher risk and return. If we were going to switch from CBA our capital would probably find itself in Westpac, or NAB which resides in our Hitlist, as opposed to ANZ which needs to get more runs on the recovery board.
- We like ANZ but it’s not one of our preferred 2, or even 3, of the Big 4.
MM is net bullish ANZ but we prefer WBC
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