The PNC Financial Services Group (NYSE:PNC) and Bridge Bancorp (NASDAQ:BDGE) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.
Dividends
The PNC Financial Services Group pays an annual dividend of $4.60 per share and has a dividend yield of 2.6%. Bridge Bancorp pays an annual dividend of $0.96 per share and has a dividend yield of 3.0%. The PNC Financial Services Group pays out 40.4% of its earnings in the form of a dividend. Bridge Bancorp pays out 37.1% 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. The PNC Financial Services Group has raised its dividend for 1 consecutive years. Bridge Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
The PNC Financial Services Group has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, Bridge Bancorp has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.
Institutional & Insider Ownership
80.6% of The PNC Financial Services Group shares are held by institutional investors. Comparatively, 58.8% of Bridge Bancorp shares are held by institutional investors. 0.3% of The PNC Financial Services Group shares are held by insiders. Comparatively, 15.5% of Bridge Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares The PNC Financial Services Group and Bridge Bancorp's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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The PNC Financial Services Group | 38.16% | 5.97% | 0.69% |
Bridge Bancorp | 23.05% | 9.83% | 0.88% |
Analyst Ratings
This is a summary of recent recommendations for The PNC Financial Services Group and Bridge Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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The PNC Financial Services Group | 1 | 12 | 7 | 0 | 2.30 |
Bridge Bancorp | 0 | 1 | 1 | 0 | 2.50 |
The PNC Financial Services Group currently has a consensus price target of $160.1176, suggesting a potential downside of 11.15%. Given The PNC Financial Services Group's higher probable upside, analysts clearly believe The PNC Financial Services Group is more favorable than Bridge Bancorp.
Valuation & Earnings
This table compares The PNC Financial Services Group and Bridge Bancorp's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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The PNC Financial Services Group | $21.62 billion | 3.53 | $5.37 billion | $11.39 | 15.82 |
Bridge Bancorp | $206.93 million | 3.09 | $51.69 million | $2.59 | 12.51 |
The PNC Financial Services Group has higher revenue and earnings than Bridge Bancorp. Bridge Bancorp is trading at a lower price-to-earnings ratio than The PNC Financial Services Group, indicating that it is currently the more affordable of the two stocks.
Summary
The PNC Financial Services Group beats Bridge Bancorp on 10 of the 17 factors compared between the two stocks.