Analyzing PNC Financial Services Group (NYSE:PNC) and AmeriServ Financial (NYSE:ASRV)

PNC Financial Services Group (NYSE:PNC) and AmeriServ Financial (NASDAQ:ASRV) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Profitability

This table compares PNC Financial Services Group and AmeriServ Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PNC Financial Services Group 24.83% 10.92% 1.33%
AmeriServ Financial 9.34% 5.97% 0.51%

Earnings & Valuation

This table compares PNC Financial Services Group and AmeriServ Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PNC Financial Services Group $21.62 billion 3.16 $5.37 billion $11.39 13.49
AmeriServ Financial $64.54 million 1.10 $6.03 million N/A N/A

PNC Financial Services Group has higher revenue and earnings than AmeriServ Financial.

Institutional & Insider Ownership

79.4% of PNC Financial Services Group shares are held by institutional investors. Comparatively, 42.9% of AmeriServ Financial shares are held by institutional investors. 0.4% of PNC Financial Services Group shares are held by insiders. Comparatively, 9.7% of AmeriServ Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

PNC Financial Services Group has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, AmeriServ Financial has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500.

Dividends

PNC Financial Services Group pays an annual dividend of $4.60 per share and has a dividend yield of 3.0%. AmeriServ Financial pays an annual dividend of $0.10 per share and has a dividend yield of 2.4%. PNC Financial Services Group pays out 40.4% of its earnings in the form of a dividend. PNC Financial Services Group has increased its dividend for 9 consecutive years and AmeriServ Financial has increased its dividend for 4 consecutive years. PNC Financial Services Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent recommendations for PNC Financial Services Group and AmeriServ Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PNC Financial Services Group 0 7 5 0 2.42
AmeriServ Financial 0 0 0 0 N/A

PNC Financial Services Group presently has a consensus target price of $157.50, indicating a potential upside of 2.53%. Given PNC Financial Services Group’s higher possible upside, equities analysts plainly believe PNC Financial Services Group is more favorable than AmeriServ Financial.

Summary

PNC Financial Services Group beats AmeriServ Financial on 13 of the 15 factors compared between the two stocks.

About PNC Financial Services Group

The PNC Financial Services Group, Inc. operates as a diversified financial services company in the United States. The Retail Banking segment offers deposit, lending, brokerage, insurance, and investment and cash management services to consumer and small business customers through a network of branches, ATMs, call centers, and online banking and mobile channels. The Corporate & Institutional Banking segment provides secured and unsecured loans, letters of credit, and equipment leases; and cash and investment management, receivables management, disbursement, fund transfer, information reporting, and global trade services, as well as foreign exchange, derivative, security underwriting, loan syndication, merger and acquisition advisory, and equity capital market advisory related services for corporations, government, and not-for-profit entities. This segment also offers commercial loan servicing and technology solutions for the commercial real estate finance industry. The Asset Management Group segment provides investment and retirement planning, customized investment management, private banking, tailored credit, and trust management and administration solutions; and multi-generational family planning products, such as estate, financial, tax planning, fiduciary, investment management and consulting, private banking, personal administrative, asset custody, and customized performance reporting services. This segment also provides chief investment officer, custody, private real estate, cash and fixed income client solutions, and retirement administration services; and mutual funds and investment strategies. The BlackRock segment offers single- and multi-asset class portfolios; and investment and risk management services technology platform. As of December 31, 2018, it operated 2,372 branches and 9,162 ATMs. The PNC Financial Services Group, Inc. was founded in 1852 and is headquartered in Pittsburgh, Pennsylvania.

About AmeriServ Financial

AmeriServ Financial Inc. operates as the bank holding company for AmeriServ Financial Bank that provides various consumer, mortgage, and commercial financial products. It offers retail banking services, such as demand, savings, and time deposits; checking and money market accounts; secured and unsecured consumer loans, and mortgage loans; and safe deposit boxes, holiday club accounts, money orders, and traveler's checks. The company also provides lending, depository, and related financial services, such as commercial real estate mortgage loans, short and medium-term loans, revolving credit arrangements, lines of credit, inventory and accounts receivable financing, real estate-construction loans, business savings accounts, certificates of deposit, wire transfers, night depository, and lock box services to commercial, industrial, financial, and governmental customers. In addition, the company offers personal trust products and services, including personal portfolio investment management, estate planning and administration, custodial services, and pre-need trusts; institutional trust products and services comprising 401(k) plans, defined benefit and defined contribution employee benefit plans, and individual retirement accounts; financial services consisting of the sale of mutual funds, annuities, and insurance products; and union collective investment funds to invest union pension dollars in construction projects that utilize union labor. Further, it engages in underwriting as reinsurer of credit life and disability insurance. The company operates through a network of 16 banking locations in Allegheny, Cambria, Centre, Somerset, Westmoreland counties, Pennsylvania, and Washington County, Maryland; and operates 17 automated bank teller machines. AmeriServ Financial, Inc. is headquartered in Johnstown, Pennsylvania.

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