Top 10 Financial Companies To Own For 2014

Among the Big Four U.S. banks, Wells Fargo (NYSE: WFC  ) is undoubtedly seen as the strongest and operational leader. However, has that reputation and optimism overheated the bank's stock price? Few question Wells Fargo's ability to generate consistent earnings, but many investors believe that other banks offer a better chance for success.

In this video, Motley Fool banking analysts David Hanson and Matt Koppenheffer debate the merits of buying Wells Fargo stock at today's price.

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Wells Fargo's dedication to solid, conservative banking helped it vastly outperform its peers during the financial meltdown. Today, Wells is the same great bank as ever, but with its stock trading at a premium to the rest of the industry, is there still room to buy, or is it time to cash in your gains? To help figure out whether Wells Fargo is a buy today, I invite you to download our premium research report from one of The Motley Fool's top banking analysts. Click here now for instant access to this in-depth take on Wells Fargo.

Top Paper Companies To Invest In Right Now: The NASDAQ OMX Group Inc.(NDAQ)

The NASDAQ OMX Group, Inc. provides trading, clearing, exchange technology, securities listing, and public company services worldwide. It offers trading across various asset classes, including cash equities, derivatives, debt, commodities, structured products, and exchange traded funds; capital formation solutions; financial services and exchanges technology; market data products; and financial indexes, as well as clearing, settlement, and depository services. The company also provides broker services comprising technology and customized securities administration solutions, such as back-office systems to financial participants. In addition, it offers global listing services; technology solutions for trading, clearing, settlement, and information dissemination; and facility management integration, surveillance solutions, and advisory services, as well as develops and licenses NASDAQ OMX branded indexes, associated derivatives, and financial products. As of December 31, 2010 , a total of 2,778 companies listed securities on The NASDAQ Stock Market. The NASDAQ OMX Group supports the operations of approximately 70 exchanges, clearing organizations, and central securities depositories. The company was formerly known as The Nasdaq Stock Market, Inc. and changed its name to The NASDAQ OMX Group, Inc. in February 2008. The NASDAQ OMX Group, Inc. was founded in 1971 and is based in New York, New York.

Advisors' Opinion:

• [By Tim Brugger]

  In a statement filed Wednesday with the SEC, NASDAQ OMX (NASDAQ: NDAQ  ) CEO Robert Greifeld said, in part, "Prior to May 18, 2012, NASDAQ had conducted more than a hundred IPOs using the same or similarly designed systems, without incident. While we prepared extensively for the Facebook initial public offering, including thorough tests of our systems with member firms, the challenges we encountered that day were unprecedented." He went on to outline the steps NASDAQ has taken to address problems and said "We recognize that the cornerstone of a market is investor confidence. As such, our mission remains: developing the best technology, and operating the most reliable and efficient marketplaces in the world -- every day."

• [By Whitney Kisling]

  Nasdaq OMX Group Inc. (NDAQ) owes $41.6 million to firms that lost money in Facebook (FB) Inc.�� initial public offering last year due to a malfunction in the exchange�� computers, according to the group that oversees brokerages.

Top 10 Financial Companies To Own For 2014: Arbor Realty Trust Inc (ABR)

Arbor Realty Trust, Inc., incorporated in June 2003, is a specialized real estate finance company. The Company invests in a diversified portfolio of structured finance assets in the multi-family and commercial real estate markets. It invests primarily in real estate-related bridge and mezzanine loans, including junior participating interests in first mortgages, preferred and direct equity, and in limited cases, discounted mortgage notes and other real estate-related assets (collectively, structured finance investments). The Company also holds investments in mortgage-related securities and real estate property. It conducts all of its operations and investing activities through its operating partnership, Arbor Realty Limited Partnership, and its wholly-owned subsidiaries. The Company serves as the general partner of its operating partnership, and owned a 100% partnership interest in its operating partnership as of December 31, 2011.

Targeted Investments

The Company offers bridge financing products to borrowers who are seeking short-term capital to be used in an acquisition of property. The bridge loans it makes range in size from $1 million to $75 million and are predominantly secured by first mortgage liens on the property. The Company offers junior participation financing in the form of junior participating interest in the senior debt. Junior participation financings have the same obligations, collateral and borrower as the senior debt. Its junior participation loans range in size from $1 million to $60 million and have terms of up to 10 years. The Company offers mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower�� equity in a transaction. The Company holds a majority of its mezzanine loans through subsidiaries of its operating partnership that are pass-through entities for tax purposes or taxable subsidiary corporations. The Company provides financing by making preferred equity investments in entit! ies that directly or indirectly own real property. Its preferred equity investments typically range in size from $1 million to $75 million, and have terms up to 10 years.

Structured Finance Investments

The Company owns a diversified portfolio of structured finance investments consisting primarily of real estate-related bridge, junior participation interests in first mortgages, and mezzanine loans, as well as preferred equity investments and mortgage-related securities. As of December 31, 2011, it had 119 loans and investments in its portfolio, totaling $1.5 billion. These loans and investments were for 72 multi-family properties, 25 office properties, nine land properties, seven hotel properties, three retail properties, two condominium properties and one commercial property.

Advisors' Opinion:

• [By Lee Jackson]

  Arbor Realty Trust Inc. (NYSE: ABR) recently increased its cash position with a secondary offering of 6 million shares of stock. The company invests in multifamily and commercial real estate-related bridge loans, junior participating interests in first mortgages, mezzanine loans, preferred and direct equity, discounted mortgage notes and other real estate-related assets, as well as holds investments in mortgage-related securities and real estate property. Arbor Realty Trust is rated as a stock to buy at Deutsche Bank with a $9.50 price target. The Thomson/First Call estimate for the stock is $9.25. Investors are paid a very solid 7.2% divided. The stock closed Friday at $6.88.

Top 10 Financial Companies To Own For 2014: PIMCO Intermediate Municipal Bond Strategy Fund (MUNI)

PIMCO Intermediate Municipal Bond Strategy Fund, formerly, PIMCO Intermediate Municipal Bond ETF (the Fund), seeks to achieve its investment objective by investing at least 80% of its assets in a diversified portfolio of debt securities whose interest is, in the opinion of bond counsel for the issuer at the time of issuance, exempt from federal income tax (Municipal Bonds). Municipal Bonds are issued by or on behalf of states and local governments and their agencies, authorities and other instrumentalities. The Fund may only invest in the United States dollar-denominated investment grade debt securities, rated Baa or higher by Moody��, or equivalently rated by S&P or Fitch. It may invest 25% or more of its total assets in Municipal Bonds that finance similar projects, such as those relating to education, health care, housing, transportation and utilities. The Fund�� investment advisor is Pacific Investment Management Company LLC (PIMCO). Advisors' Opinion:

• [By Mary Anne & Pamela Aden]

  The ones we like best and recommend buying are the iShares 20+ year Treasury Bond (TLT), the iShares 10-20 year Treasury Bond (TLH), Proshares Ultra 20+ year Treasury (UBT) and Pimco Intermediate Muni Bond strategy ETF (MUNI).

Top 10 Financial Companies To Own For 2014: Investors Bancorp Inc.(ISBC)

Investors Bancorp, Inc. operates as the holding company for Investors Savings Bank that provides a range of banking services in the United States. The company accepts deposits and originates loans. Its deposit products include savings accounts, checking accounts, money market accounts, and certificates of deposit. The company offers commercial real estate, construction, multi-family, and commercial and industrial loans; and consumer loans, including home equity loans and home equity lines of credit, as well as mortgage loans secured by one-to four-family residential real estate. As of December 31, 2010, it operated 82 full-service branch offices located in Essex, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Union, and Warren Counties, New Jersey; Nassau and Queens, New York; and Massachusetts. The company was founded in 1926 and is headquartered in Short Hills, New Jersey. Investors Bancorp, Inc. is a subsidiary of Investors Bancorp, MHC.

Advisors' Opinion:

• [By Tim Melvin]

  He also pointed out that the approaching completion of Roma Financial (ROMA) and Investors Bancorp (ISBC) has some interesting implications for bank stock investors. Both are mutual holding companies, and the newly formed bank is expected to complete the process and do a second-step conversion offering. That will be a fairly large deal, much larger than most second-step offerings, as the combined banks should be somewhere around $3 billion in market cap. There will be larger investment banks involved, complete with road shows and institutional meetings to promote the deal. The attention could well cause a revaluation of the mutual holding company and converted thrift sector of the banking market.

• [By Jim Royal]

  I'm about to buy shares in Investors Bancorp (NASDAQ: ISBC  ) , a soon-to-demutualize thrift that is undervalued. The thrift has quickly grown assets since it went public in 2005 and, with improving credit metrics and a solid return on equity, the bank is ready to make the final leap to full public ownership. So my Special Situations portfolio will acquire shares shortly. Here's why I like the stock.

Top 10 Financial Companies To Own For 2014: AKB Mosoblbank OAO (MOBB)

AKB MOSOBLBANK OAO (AKB MOSOBLBANK OJSC) is a Russia-based commercial bank. The Company focuses on the provision of various types of banking services to both individual and corporate clients. The Bank offers its services through the network of 400 offices and automated teller machines (ATM), located across the Russian Federation. In addition, it has 23 branches in such cities as: Rostov na Donu, Samara, Astrakhan, Arkhangelsk, Nizhny Novgorod, Omsk, Tyumen, Yakutsk, Grozny, Kemerovo and Vladivostok, among others. As of May 25, 2012, the Company�� major shareholder was Respublikanskaya Finansovaya Korporatsiya OAO with a stake of 74.19%. Advisors' Opinion:

• [By Corinne Gretler]

  UBS, Switzerland�� largest bank, rallied to a two-year high. Philips, the Dutch maker of light bulbs and electric toothbrushes, gained for an eighth day. Portugal�� PSI-20 Index (PSI20) advanced 2.3 percent as President Anibal Cavaco Silva affirmed that he doesn�� want to call early elections. Mobistar (MOBB) SA slumped the most on record after the Belgian mobile-phone company cut profit forecasts and suspended its dividend.

Top 10 Financial Companies To Own For 2014: American Realty Capital Properties Inc (ARCP)

American Realty Capital Properties, Inc., incorporated on December 2, 2010, is a real estate investment trust (REIT). The Company owns and acquires single-tenant, freestanding commercial real estate primarily subject to medium-term net leases with credit quality tenants. The Company is externally managed by ARC Properties Advisors, LLC. In February 2013, it announced the closing of the transaction to acquire American Realty Capital Trust III, Inc. In March 2013, it announced that it purchased a TD Bank office building in Falmouth, Maine. In April 2013, it closed lease acquisitions, including nine properties located in four states plus Puerto Rico with approximately 200,000 total rentable square feet. In April 2013, it closed an additional single tenant net lease acquisitions, including six properties leased to four investment grade or credit-worthy tenants, including CVS, Family Dollar, Hy-Vee and Advance Auto. In November 2013, American Realty Capital Properties, Inc acquired CapLease, Inc. Effective January 3, 2014, American Realty Capital Properties Inc, , through its Thunder Acquisition LLC unit, acquired the entire share capital of American Realty Capital Trust IV Inc (ARCT).

As of December 31, 2012, rental revenues derived from investment grade tenants. As of December 31, 2012, the Company owned 146 properties, which consists of 2.4 million square feet and located in 26 states, excluding one vacant property classified as held for sale. The Company is holder of 95.9% of the interest in the ARC Properties Operating Partnership, L.P.

Advisors' Opinion:

• [By Jonas Elmerraji]

  2014 has been a challenging year for shares of American Realty Capital Properties (ARCP). Since the calendar flipped to January, this commercial real estate name has dropped by 6% and change, underperforming the rest of the REIT space in dramatic fashion. But with event risk largely shaken out of ARCP, this landlord is starting to look like an interesting, if speculative, bet. Last quarter, funds picked up a whopping 383.99 million shares of ARCP, a buy operation that amounts to 42% of this firm's outstanding shares. That's a conviction bet if ever there was one.

  ARCP invests in single-tenant commercial properties, with a portfolio that includes everything from retail restaurant space to office buildings. The firm recently made news when it announced that it was planning on selling essentially all of its shopping center assets to Blackstone Group (BX) for $1.975 billion, rather than unloading those shopping centers through a spinoff. Simultaneously, the firm plans to use the proceeds of the Blackstone deal to fund a major sale-leaseback transaction in Red Lobster restaurants for $1.5 billion. Shares dropped hard on news of the change in course, but now that they've settled, this stock could be a particularly solid name for income-seekers who aren't exceptionally risk-averse.

  Right now, ARCP pays out an 8.33-cent monthly dividend, a payout that adds up to a massive 8.3% yield at current levels. That big payout should continue to hold significant appeal as interest rates stay constrained near zero.

• [By Brad Thomas]

  He has undeniably delivered for his investors. In the space of 18 months, Mr. Schorsch has executed three transactions. He helped with the roadshow for Healthcare Trust of America (HTA), a non-traded REIT for which he served as broker-dealer and raised nearly $1 billion. He also listed American Realty Capital Trust (ARCT) for public trading and merged ARCT III with his own American Realty Capital Properties (ARCP). The three deals netted investors internal rates of return of 11%, 14% and 33%, respectively, according to company data. In the meantime, publicly traded shares of ARCP have increased 60% - to $16, from $10 - since last July.

• [By Charles Sizemore]

  In the world of triple-net REITs, most of the attention in the past week has been on the planned merger of American Capital Realty Properties (ARCP) and Cole Real Estate Investments (COLE). I recently wrote about ARCP, noting that the REIT had seen heavy insider buying over the summer ��at prices higher than today��. I also recommended the stock based on its growth prospects within a sector I love and its high dividend yield — 6.7% at today�� prices.

Top 10 Financial Companies To Own For 2014: Bank Rakyat Indonesia Persero Tbk PT (BKRKY)

PT Bank Rakyat Indonesia (Persero) Tbk (the Bank) is an Indonesia-based financial institution. It is engaged in banking activities and its products and services include savings, loans, credits, treasury products and investment banking. It provides service to micro, small and middle enterprise (SME). Besides that, the Bank also engages in providing consumer finance as well as e-banking services which can be accessed by Internet, telephone, Short Message Service (SMS) and other e-channel service such as Cash Deposit Machine (CDM), Electronic Data Capture (EDC), and KiosK. The Bank's subsidiaries are PT Bank BRISyariah, PT Bank Agroniaga Tbk and BRIngin Remittance Co. Ltd. The Bank has an international branch in Cayman Islands and two representative offices in New York and Hong Kong. Advisors' Opinion:

• [By Holly LaFon]

  Bank Rakyat Indonesia (BKRKY) (Persero) Tbk PT, a leading commercial bank and microfinance lender in Indonesia, declined in the third quarter. Recent stock performance was largely attributable to a significant drop in the Indonesian Rupiah. While we believe the company's fundamentals and competitive position remain sound, the country suffered a larger than expected deterioration in its current account deficit, leading to a weaker currency and higher interest rates, which negatively impacted its local equity market. (Michael Kass)