QCR (NASDAQ:QCRH – Get Free Report) and The PNC Financial Services Group (NYSE:PNC – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.
Profitability
This table compares QCR and The PNC Financial Services Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| QCR | 23.17% | 12.71% | 1.50% |
| The PNC Financial Services Group | 21.83% | 12.82% | 1.33% |
Analyst Ratings
This is a summary of current recommendations and price targets for QCR and The PNC Financial Services Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| QCR | 0 | 3 | 4 | 0 | 2.57 |
| The PNC Financial Services Group | 0 | 8 | 17 | 0 | 2.68 |
Earnings & Valuation
This table compares QCR and The PNC Financial Services Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| QCR | $603.75 million | 2.74 | $127.19 million | $8.51 | 11.85 |
| The PNC Financial Services Group | $25.20 billion | 3.55 | $6.94 billion | $18.79 | 12.00 |
The PNC Financial Services Group has higher revenue and earnings than QCR. QCR is trading at a lower price-to-earnings ratio than The PNC Financial Services Group, indicating that it is currently the more affordable of the two stocks.
Dividends
QCR pays an annual dividend of $0.60 per share and has a dividend yield of 0.6%. The PNC Financial Services Group pays an annual dividend of $8.00 per share and has a dividend yield of 3.5%. QCR pays out 7.1% of its earnings in the form of a dividend. The PNC Financial Services Group pays out 42.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. The PNC Financial Services Group has increased its dividend for 14 consecutive years. The PNC Financial Services Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
QCR has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, The PNC Financial Services Group has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.
Institutional and Insider Ownership
70.0% of QCR shares are held by institutional investors. Comparatively, 83.5% of The PNC Financial Services Group shares are held by institutional investors. 3.2% of QCR shares are held by company insiders. Comparatively, 0.4% of The PNC Financial Services Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
The PNC Financial Services Group beats QCR on 13 of the 17 factors compared between the two stocks.
About QCR
QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. The company’s deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits. It also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. The company’s loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines. In addition, it engages in leasing of machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuance of trust preferred securities. QCR Holdings, Inc. was incorporated in 1993 and is headquartered in Moline, Illinois.
About The PNC Financial Services Group
The PNC Financial Services Group, Inc. operates as a diversified financial services company in the United States. It operates through three segments: Retail Banking, Corporate & Institutional Banking, and Asset Management Group segments. The company's Retail Banking segment offers checking, savings, and money market accounts, as well as time deposit; residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans, and personal and small business loans and lines of credit; and brokerage, insurance, and investment and cash management services. This segment serves consumer and small business customers through a network of branches, digital channels, ATMs, and through phone-based customer contact centers. Its Corporate & Institutional Banking segment provides secured and unsecured loans, letters of credit, and equipment leases; cash and investment management services, receivables and disbursement management services, funds transfer services, international payment services, and access to online/mobile information management and reporting; securities underwriting, loan syndications, customer-related trading, and mergers and acquisitions and equity capital markets advisory related services; and commercial loan servicing and technology solutions. It serves mid-sized and large corporations, and government and not-for-profit entities. The company's Asset Management Group segment offers investment and retirement planning, customized investment management, credit and cash management solutions, and trust management and administration services for high net worth and ultra high net worth individuals, and their families; and multi-generational family planning services for ultra high net worth individuals and their families. It also provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, and retirement plan fiduciary investment services for institutional clients. The company was founded in 1852 and is headquartered in Pittsburgh, Pennsylvania.
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