Glacier Bancorp (NASDAQ:GBCI) and The PNC Financial Services Group (NYSE:PNC) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.
Risk and Volatility
Glacier Bancorp has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, 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.
Insider and Institutional Ownership
68.1% of Glacier Bancorp shares are owned by institutional investors. Comparatively, 80.6% of The PNC Financial Services Group shares are owned by institutional investors. 0.5% of Glacier Bancorp shares are owned by company insiders. Comparatively, 0.3% of The PNC Financial Services Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Dividends
Glacier Bancorp pays an annual dividend of $1.24 per share and has a dividend yield of 2.1%. The PNC Financial Services Group pays an annual dividend of $4.60 per share and has a dividend yield of 2.6%. Glacier Bancorp pays out 52.1% of its earnings in the form of a dividend. The PNC Financial Services Group pays out 40.4% 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. Glacier Bancorp has increased its dividend for 3 consecutive years and The PNC Financial Services Group has increased its dividend for 1 consecutive years. The PNC Financial Services Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares Glacier Bancorp and The PNC Financial Services Group's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Glacier Bancorp | $676.95 million | 8.49 | $210.54 million | $2.38 | 25.28 |
The PNC Financial Services Group | $21.62 billion | 3.51 | $5.37 billion | $11.39 | 15.70 |
The PNC Financial Services Group has higher revenue and earnings than Glacier Bancorp. The PNC Financial Services Group is trading at a lower price-to-earnings ratio than Glacier Bancorp, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Glacier Bancorp and The PNC Financial Services Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Glacier Bancorp | 31.94% | 11.31% | 1.52% |
The PNC Financial Services Group | 38.16% | 5.97% | 0.69% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Glacier Bancorp and The PNC Financial Services Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Glacier Bancorp | 0 | 2 | 1 | 0 | 2.33 |
The PNC Financial Services Group | 1 | 12 | 6 | 0 | 2.26 |
Glacier Bancorp currently has a consensus price target of $38.00, suggesting a potential downside of 36.85%. The PNC Financial Services Group has a consensus price target of $163.3125, suggesting a potential downside of 8.69%. Given The PNC Financial Services Group's higher probable upside, analysts clearly believe The PNC Financial Services Group is more favorable than Glacier Bancorp.
Summary
The PNC Financial Services Group beats Glacier Bancorp on 10 of the 17 factors compared between the two stocks.