Although the banks are trading in the bottom 2 percent of their historic trading range, based on book value, Hintz said many investors do not believe in price-book anymore because they have experienced a market during the financial crisis in which "everything became illiquid and price-book became meaningless."
Hintz said that both Goldman Sachs and Morgan Stanley are cyclical stocks, and investors do not need to be in a hurry to invest in them.
He added that cyclical stocks do not perform well when the cycle is turning against investors, but that nothing is "fundamentally wrong" with either company.
"In essence, what we're saying is the cyclical recovery of the banks has been pushed back another year here," Hintz said. "There's nothing that really argues to jump in. Their low valuation argues for the outperform."
WATCH: Analysts Discuss Goldman Sachs, Morgan Stanley______________________________
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Disclosure information was not available for Brad Hintz or Sanford Bernstein.