PNC Financial Services Group (NASDAQ: PFIS) and Peoples Financial Services (NASDAQ:PFIS) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PNC Financial Services Group $18.04 billion 3.60 $5.34 billion $8.50 16.43
Peoples Financial Services $91.43 million 3.66 $18.45 million N/A N/A

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

Profitability

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

Net Margins Return on Equity Return on Assets
PNC Financial Services Group 30.40% 10.33% 1.28%
Peoples Financial Services 21.25% 8.31% 1.02%

Risk and Volatility

PNC Financial Services Group has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Peoples Financial Services has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for PNC Financial Services Group and Peoples Financial Services, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PNC Financial Services Group 0 15 7 0 2.32
Peoples Financial Services 0 0 0 0 N/A

PNC Financial Services Group presently has a consensus target price of $150.14, indicating a potential upside of 7.50%. Given PNC Financial Services Group’s higher probable upside, research analysts clearly believe PNC Financial Services Group is more favorable than Peoples Financial Services.

Insider and Institutional Ownership

79.8% of PNC Financial Services Group shares are owned by institutional investors. Comparatively, 24.2% of Peoples Financial Services shares are owned by institutional investors. 0.4% of PNC Financial Services Group shares are owned by insiders. Comparatively, 7.7% of Peoples Financial Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

PNC Financial Services Group pays an annual dividend of $3.80 per share and has a dividend yield of 2.7%. Peoples Financial Services pays an annual dividend of $1.32 per share and has a dividend yield of 2.9%. PNC Financial Services Group pays out 44.7% of its earnings in the form of a dividend. PNC Financial Services Group has increased its dividend for 7 consecutive years.

Summary

PNC Financial Services Group beats Peoples Financial Services on 10 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 and internationally. The company operates through four segments: Retail Banking, Corporate & Institutional Banking, Asset Management Group, and BlackRock. The Retail Banking segment offers deposit, lending, brokerage, 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. As of December 31, 2017, this segment operated a network of 2,459 branches and 9,051 ATMs. The Corporate & Institutional Banking segment provides secured and unsecured loans, letters of credit, and equipment lease; and cash and investment management, receivables management, disbursement, fund transfer, information reporting, and trade, 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, credit, and trust management and administration solutions; 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; advisory, custody, and retirement administration services; and mutual funds to high net worth and ultra high net worth clients, as well as institutions. The BlackRock segment offers investment and risk management services to institutional and retail clients. The PNC Financial Services Group, Inc. was founded in 1922 and is headquartered in Pittsburgh, Pennsylvania.

About Peoples Financial Services

Peoples Financial Services Corp. operates as the bank holding company for Peoples Security Bank and Trust Company that provides financial services. The company accepts money market, NOW, savings, individual retirement, and demand deposit accounts, as well as certificates of deposit. Its loan products include residential real estate, automobile, manufactured housing, personal, student, home equity, and credit card loans; and commercial real estate, working capital, construction, small business administration, and agricultural loans, as well as loans for equipment and other commercial needs, and mineral rights. The company also offers investment management, IRA trustee, estate administration, living and life insurance trusts, trustee under will, guardianship, custodial/IRA custodial, and corporate trusts services, as well as pension and profit sharing plans. In addition, it provides investment portfolio management, estate and business succession planning, annuities, insurance, education funding strategies, and tax planning; and securities and brokerage, and investor services. Further, the company offers small business checking accounts, merchant money market accounts, online and telephone banking, business credit cards, merchant line of credit, and financial checkup services. Additionally, it provides remote deposit capture, cash management, night depository, and direct deposit, and official check services, as well as automatic clearing house transactions, automated teller machines, point of sale transactions, and safe deposit boxes. The company serves business, governmental, professional, and retail customers, as well as non-profits and municipal agencies through 27 full-service community banking offices located in Lackawanna, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna, Wayne, and Wyoming Counties of Pennsylvania; and Broome County of New York. Peoples Financial Services Corp. was founded in 1905 and is headquartered in Scranton, Pennsylvania.

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