Financial Contrast: PNC Financial Services Group (NYSE:PNC) & National Bank (NYSE:NBHC)

National Bank (NYSE:NBHC) and PNC Financial Services Group (NYSE:PNC) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
National Bank 24.51% 10.78% 1.34%
PNC Financial Services Group 24.96% 10.94% 1.34%

Dividends

National Bank pays an annual dividend of $0.76 per share and has a dividend yield of 2.2%. PNC Financial Services Group pays an annual dividend of $4.60 per share and has a dividend yield of 3.0%. National Bank pays out 35.2% of its earnings in the form of a dividend. PNC Financial Services Group pays out 43.0% 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.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Bank $292.17 million 3.70 $61.45 million $2.16 16.07
PNC Financial Services Group $19.99 billion 3.36 $5.30 billion $10.71 14.09

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

Insider & Institutional Ownership

94.0% of National Bank shares are owned by institutional investors. Comparatively, 80.5% of PNC Financial Services Group shares are owned by institutional investors. 5.5% of National Bank shares are owned by company insiders. Comparatively, 0.4% of PNC Financial Services Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for National Bank and PNC Financial Services Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Bank 0 2 0 0 2.00
PNC Financial Services Group 0 10 3 0 2.23

National Bank currently has a consensus target price of $35.00, indicating a potential upside of 0.84%. PNC Financial Services Group has a consensus target price of $146.13, indicating a potential downside of 3.14%. Given National Bank’s higher probable upside, analysts plainly believe National Bank is more favorable than PNC Financial Services Group.

Risk & Volatility

National Bank has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, PNC Financial Services Group has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Summary

PNC Financial Services Group beats National Bank on 9 of the 15 factors compared between the two stocks.

About National Bank

National Bank Holdings Corporation operates as the bank holding company for NBH Bank, N.A. that provides various banking products and financial services to commercial, business, and consumer clients in the United States. The company offers deposit products, including checking accounts, savings accounts, money market accounts, and other deposit accounts, including fixed-rate and fixed maturity time deposits. It also provides commercial and industrial loans and leases, such as working capital loans, equipment loans, lender finance loans, agriculture loans, government and non-profit loans, owner occupied commercial real estate loans, and other commercial loans and leases. The company also offers non-owner occupied commercial real estate loans consisting of loans on multi-family construction properties; commercial properties, such as office buildings, retail centers, or free-standing commercial properties; and multi-family and investor properties, as well as raw land development loans. In addition, it offers treasury management solutions comprising online and mobile banking, commercial credit card, wire transfer, automated clearing house, electronic bill payment, lock box, remote deposit capture, merchant processing, cash vault, controlled disbursements, and fraud prevention services, as well as other auxiliary services, including account reconciliation, collections, repurchase accounts, zero balance accounts, and sweep accounts. As of December 31, 2017, the company operated through a network of 85 banking centers located in Colorado, the greater Kansas City area, New Mexico, and Texas. It also operates 106 ATMs. The company was formerly known as NBH Holdings Corp. and changed its name to National Bank Holdings Corporation in March 2012. National Bank Holdings Corporation was incorporated in 2009 and is headquartered in Greenwood Village, Colorado.

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.

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