Contrasting The PNC Financial Services Group (NYSE:PNC) and Ohio Valley Banc (NASDAQ:OVBC)

Ohio Valley Banc (NASDAQ:OVBC) and The PNC Financial Services Group (NYSE:PNC) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Ohio Valley Banc and The PNC Financial Services Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ohio Valley Banc	0	0	1	0	3.00
The PNC Financial Services Group	0	4	17	1	2.86

The PNC Financial Services Group has a consensus target price of $265.73, indicating a potential upside of 9.40%. Given The PNC Financial Services Group’s higher probable upside, analysts clearly believe The PNC Financial Services Group is more favorable than Ohio Valley Banc.

Earnings & Valuation

This table compares Ohio Valley Banc 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
Ohio Valley Banc	$94.21 million	2.33	$15.60 million	$3.01	15.49
The PNC Financial Services Group	$34.00 billion	2.85	$6.94 billion	$18.17	13.37

The PNC Financial Services Group has higher revenue and earnings than Ohio Valley Banc. The PNC Financial Services Group is trading at a lower price-to-earnings ratio than Ohio Valley Banc, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ohio Valley Banc and The PNC Financial Services Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ohio Valley Banc	14.31%	8.37%	0.88%
The PNC Financial Services Group	21.41%	12.48%	1.31%

Volatility and Risk

Ohio Valley Banc has a beta of 0.04, suggesting that its share price is 96% less volatile than the S&P 500. Comparatively, The PNC Financial Services Group has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Institutional & Insider Ownership

22.1% of Ohio Valley Banc shares are held by institutional investors. Comparatively, 83.5% of The PNC Financial Services Group shares are held by institutional investors. 7.2% of Ohio Valley Banc 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Ohio Valley Banc pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. The PNC Financial Services Group pays an annual dividend of $8.00 per share and has a dividend yield of 3.3%. Ohio Valley Banc pays out 33.2% of its earnings in the form of a dividend. The PNC Financial Services Group pays out 44.0% 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. Ohio Valley Banc has increased its dividend for 3 consecutive years and 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.

Summary

The PNC Financial Services Group beats Ohio Valley Banc on 14 of the 18 factors compared between the two stocks.

About Ohio Valley Banc

Ohio Valley Banc Corp. operates as the bank holding company for The Ohio Valley Bank Company that provides commercial and consumer banking products and services. The company operates in two segments, Banking and Consumer Finance. It accepts various deposit products, including checking, savings, time, and money market accounts, as well as individual retirement accounts, demand deposits, NOW accounts, and certificates of deposit. The company also provides various residential real estate loans, including one-to four-family residential mortgages; commercial loans for securing equipment, inventory, stock, commercial real estate, and rental property; and consumer loans secured by automobiles, mobile homes, recreational vehicles, and other personal property, as well as personal loans, unsecured credit card receivables, floor plan and student loans, and construction loans. In addition, it offers safe deposit box, wire transfer, credit card, home equity loans, and Internet banking services; and financial management online services, such as cash management and news updates related to repossession auctions, current rates, and general bank news. Further, the company provides automatic teller machines (ATMs), consumer finance, seasonal tax preparation, commercial property, and various liability insurance services, as well as trust and online-only consumer direct mortgage services. The company owns and operates ATMs, including off-site ATMs. It operates offices in Ohio and West Virginia. The company was founded in 1872 and is based in Gallipolis, Ohio.

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.