The PNC Financial Services Group (NYSE:PNC) and CVB Financial (NASDAQ:CVBF) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.
Analyst Ratings
This is a breakdown of recent ratings for The PNC Financial Services Group and CVB Financial, as provided by MarketBeat.
| 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 |
CVB Financial | 0 | 3 | 0 | 0 | 2.00 |
The PNC Financial Services Group presently has a consensus price target of $160.1176, indicating a potential downside of 10.02%. CVB Financial has a consensus price target of $19.75, indicating a potential downside of 9.28%. Given CVB Financial's higher probable upside, analysts plainly believe CVB Financial is more favorable than The PNC Financial Services Group.
Valuation & Earnings
This table compares The PNC Financial Services Group and CVB Financial'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 | 3.50 | $5.37 billion | $11.39 | 15.69 |
CVB Financial | $516.89 million | 5.76 | $207.83 million | $1.48 | 14.80 |
The PNC Financial Services Group has higher revenue and earnings than CVB Financial. CVB Financial 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.
Profitability
This table compares The PNC Financial Services Group and CVB Financial'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% |
CVB Financial | 36.90% | 9.06% | 1.41% |
Volatility & Risk
The PNC Financial Services Group has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, CVB Financial has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.
Dividends
The PNC Financial Services Group pays an annual dividend of $4.60 per share and has a dividend yield of 2.6%. CVB Financial pays an annual dividend of $0.72 per share and has a dividend yield of 3.3%. The PNC Financial Services Group pays out 40.4% of its earnings in the form of a dividend. CVB Financial pays out 48.6% 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 increased its dividend for 1 consecutive years and CVB Financial has increased its dividend for 1 consecutive years.
Institutional and Insider Ownership
80.6% of The PNC Financial Services Group shares are held by institutional investors. Comparatively, 68.6% of CVB Financial shares are held by institutional investors. 0.3% of The PNC Financial Services Group shares are held by insiders. Comparatively, 5.7% of CVB Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
The PNC Financial Services Group beats CVB Financial on 9 of the 16 factors compared between the two stocks.