The PNC Financial Services Group (PNC) vs. Its Peers Financial Analysis

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

Insider and Institutional Ownership

83.5% of The PNC Financial Services Group shares are held by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are held by institutional investors. 0.4% of The PNC Financial Services Group shares are held by insiders. Comparatively, 9.7% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for The PNC Financial Services Group and its peers, as provided 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	7492	30250	27848	1488	2.35

The PNC Financial Services Group presently has a consensus target price of $266.04, indicating a potential upside of 14.55%. As a group, “Banks” companies have a potential upside of 14.31%. Given The PNC Financial Services Group’s stronger consensus rating and higher possible upside, research analysts plainly believe The PNC Financial Services Group is more favorable than its peers.

Dividends

The PNC Financial Services Group pays an annual dividend of $8.00 per share and has a dividend yield of 3.4%. 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 8.9% and pay out 28.9% of their earnings in the form of a dividend. The PNC Financial Services Group has increased 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.

Risk and Volatility

The PNC Financial Services Group has a beta of 0.92, indicating 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, indicating that their average share price is 39% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
The PNC Financial Services Group	$34.00 billion	$6.94 billion	12.36
The PNC Financial Services Group Competitors	$13.78 billion	$2.42 billion	21.35

The PNC Financial Services Group has higher revenue and earnings than its peers. 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.

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	15.63%	9.41%	0.93%

Summary

The PNC Financial Services Group beats its peers on 10 of the 15 factors compared.

About The PNC Financial Services Group

The PNC Financial Services Group, Inc. is a diversified financial services company headquartered in Pittsburgh, Pennsylvania. It serves consumers, small businesses, corporations, government entities and institutional clients through a range of banking and financial services. PNC’s businesses include retail banking, corporate and institutional banking, and asset management. Its offerings include deposit accounts, lending, cash management, treasury services, investment and wealth management, and other financial products and services.