Contrasting The PNC Financial Services Group (PNC) & The Competition

The PNC Financial Services Group (NYSE:PNC) is one of 919 public companies in the “Banks” industry, but how does it contrast to its peers? We will compare The PNC Financial Services Group to related companies based on the strength of its dividends, earnings, profitability, risk, analyst recommendations, institutional ownership and valuation.

Dividends

The PNC Financial Services Group pays an annual dividend of $8.00 per share and has a dividend yield of 3.5%. The PNC Financial Services Group pays out 42.6% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.2% and pay out 28.9% of their earnings in the form of a dividend. The PNC Financial Services Group has raised its dividend for 14 consecutive years. The PNC Financial Services Group lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility and Risk

The PNC Financial Services Group has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, The PNC Financial Services Group’s peers have a beta of 0.61, suggesting that their average share price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for The PNC Financial Services Group and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The PNC Financial Services Group	0	8	17	0	2.68
The PNC Financial Services Group Competitors	7483	30221	27803	1478	2.35

The PNC Financial Services Group presently has a consensus target price of $266.04, indicating a potential upside of 18.03%. As a group, “Banks” companies have a potential upside of 16.39%. Given The PNC Financial Services Group’s stronger consensus rating and higher possible upside, analysts plainly believe The PNC Financial Services Group is more favorable than its peers.

Earnings & Valuation

This table compares The PNC Financial Services Group and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
The PNC Financial Services Group	$34.00 billion	$6.94 billion	12.00
The PNC Financial Services Group Competitors	$63.00 billion	$2.42 billion	21.06

The PNC Financial Services Group’s peers have higher revenue, but lower earnings than The PNC Financial Services Group. The PNC Financial Services Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

83.5% of The PNC Financial Services Group shares are owned by institutional investors. Comparatively, 47.9% of shares of all “Banks” companies are owned by institutional investors. 0.4% of The PNC Financial Services Group shares are owned by insiders. Comparatively, 9.7% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares The PNC Financial Services Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The PNC Financial Services Group	21.83%	12.82%	1.33%
The PNC Financial Services Group Competitors	15.65%	9.44%	0.93%

Summary

The PNC Financial Services Group beats its peers on 9 of the 15 factors compared.

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.