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Jan. 5, 2022, 9:49 a.m. EST

Commonwealth Games could shine investor spotlight on U.K. industrials

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By Steve Goldstein

The upcoming Commonwealth Games have the opportunity to focus investor minds on the U.K.’s “Mittelstand” in the Greater Birmingham region, an analyst says.

Mittelstand is the German word for small- to medium-sized enterprises. The Commonwealth Games, a mini Olympics for former members of the British Empire, are due to be held in Birmingham starting July 28.

“The heart of the Midlands was the birthplace of the industrial revolution which began in the 18th century. Birmingham is a major city in the West Midlands and is still home to the UK automotive industry and a profusion of SMEs,” said strategists at Jefferies led by Sean Darby.

U.K. SME stocks appear to have a decent return on equity and value, they said. They screened for industrials offering both value and quality, coming up with a list including Mitie Group /zigman2/quotes/201200333/delayed UK:MTO +0.66% , Pagegroup /zigman2/quotes/203982351/delayed UK:PAGE -1.41% , SThree /zigman2/quotes/205752173/delayed UK:STEM -0.98% , Avon Protection /zigman2/quotes/209664543/delayed UK:AVON -1.06% and Morgan Advanced Materials /zigman2/quotes/208158435/delayed UK:MGAM -0.98% .

“We continue to like the UK banks whose dividend yield is half the multiple of the PE – a value investor’s dream whilst trading on fair PEG ratios,” they added. That description, on Jefferies numbers, can be applied to Bank of Georgia /zigman2/quotes/206519596/delayed UK:BGEO -0.39% , Barclays /zigman2/quotes/208409333/delayed UK:BARC +0.15% , Lloyds Banking Group /zigman2/quotes/202285510/delayed UK:LLOY +1.25% , OSB Group /zigman2/quotes/201874630/delayed UK:OSB +0.93% , TBC Bank /zigman2/quotes/203300407/delayed UK:TBCG +0.46% and Virgin Money UK /zigman2/quotes/207233909/delayed UK:VMUK +1.59% .

The FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.81% edged up 0.1% in afternoon trade, with investors hesitant ahead of the Fed minutes, due after the London Stock Exchange close. Supermarket delivery firm Ocado /zigman2/quotes/207225647/delayed UK:OCDO +0.91% rose 4% to lead the U.K. benchmark, while movie-chain operator Cineworld /zigman2/quotes/206525056/delayed UK:CINE +2.29% surged 20% to be the top performing FTSE 250 stock.

/zigman2/quotes/201200333/delayed
UK : U.K.: London
76.10 p
+0.50 +0.66%
Volume: 5.20M
Nov. 30, 2022 4:35p
P/E Ratio
34.13
Dividend Yield
2.76%
Market Cap
£1.03 billion
Rev. per Employee
£54,744
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/zigman2/quotes/203982351/delayed
UK : U.K.: London
473.80 p
-6.80 -1.41%
Volume: 609,539
Nov. 30, 2022 4:35p
P/E Ratio
9.39
Dividend Yield
8.85%
Market Cap
£1.52 billion
Rev. per Employee
£236,615
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/zigman2/quotes/205752173/delayed
UK : U.K.: London
405.50 p
-4.00 -0.98%
Volume: 179,681
Nov. 30, 2022 4:35p
P/E Ratio
10.09
Dividend Yield
3.21%
Market Cap
£546.04 million
Rev. per Employee
£544,006
loading...
/zigman2/quotes/209664543/delayed
UK : U.K.: London
£ 1,029.00
-11.00 -1.06%
Volume: 195,929
Nov. 30, 2022 4:35p
P/E Ratio
N/A
Dividend Yield
0.04%
Market Cap
£311.20 million
Rev. per Employee
N/A
loading...
/zigman2/quotes/208158435/delayed
UK : U.K.: London
302.00 p
-3.00 -0.98%
Volume: 259,902
Nov. 30, 2022 4:35p
P/E Ratio
10.94
Dividend Yield
3.71%
Market Cap
£867.81 million
Rev. per Employee
£130,705
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/zigman2/quotes/206519596/delayed
UK : U.K.: London
2,530.00 p
-10.00 -0.39%
Volume: 102,929
Nov. 30, 2022 4:35p
P/E Ratio
4.52
Dividend Yield
4.88%
Market Cap
£1.21 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208409333/delayed
UK : U.K.: London
161.24 p
+0.24 +0.15%
Volume: 78.09M
Nov. 30, 2022 4:35p
P/E Ratio
N/A
Dividend Yield
3.88%
Market Cap
£25.53 billion
Rev. per Employee
£297,978
loading...
/zigman2/quotes/202285510/delayed
UK : U.K.: London
46.91 p
+0.58 +1.25%
Volume: 265.71M
Nov. 30, 2022 4:35p
P/E Ratio
N/A
Dividend Yield
4.54%
Market Cap
£31.15 billion
Rev. per Employee
£296,213
loading...
/zigman2/quotes/201874630/delayed
UK : U.K.: London
£ 477.80
+4.40 +0.93%
Volume: 724,789
Nov. 30, 2022 4:35p
P/E Ratio
5.60
Dividend Yield
0.06%
Market Cap
£2.03 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203300407/delayed
UK : U.K.: London
2,185.00 p
+10.00 +0.46%
Volume: 124,112
Nov. 30, 2022 4:35p
P/E Ratio
4.65
Dividend Yield
6.30%
Market Cap
£1.19 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/207233909/delayed
UK : U.K.: London
£ 172.40
+2.70 +1.59%
Volume: 3.37M
Nov. 30, 2022 4:35p
P/E Ratio
5.33
Dividend Yield
0.06%
Market Cap
£2.36 billion
Rev. per Employee
£321,777
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,573.05
+61.05 +0.81%
Volume: 1.36M
Nov. 30, 2022 4:56p
loading...
/zigman2/quotes/207225647/delayed
UK : U.K.: London
622.60 p
+5.60 +0.91%
Volume: 5.47M
Nov. 30, 2022 4:35p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£5.03 billion
Rev. per Employee
£126,159
loading...
/zigman2/quotes/206525056/delayed
UK : U.K.: London
4.69 p
+0.11 +2.29%
Volume: 9.05M
Nov. 30, 2022 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£62.93 million
Rev. per Employee
N/A
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