The PNC Financial Services Group (NYSE:PNC) and Investors Bancorp (NASDAQ:ISBC) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.
Risk & Volatility
The PNC Financial Services Group has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Investors Bancorp has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.
Institutional & Insider Ownership
80.6% of The PNC Financial Services Group shares are owned by institutional investors. Comparatively, 72.5% of Investors Bancorp shares are owned by institutional investors. 0.3% of The PNC Financial Services Group shares are owned by insiders. Comparatively, 3.5% of Investors Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Dividends
The PNC Financial Services Group pays an annual dividend of $4.60 per share and has a dividend yield of 2.7%. Investors Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 4.2%. The PNC Financial Services Group pays out 40.4% of its earnings in the form of a dividend. Investors Bancorp pays out 72.7% 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 and Investors Bancorp has raised its dividend for 1 consecutive years.
Profitability
This table compares The PNC Financial Services Group and Investors 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% |
Investors Bancorp | 18.26% | 7.73% | 0.76% |
Analyst Recommendations
This is a breakdown of recent recommendations for The PNC Financial Services Group and Investors Bancorp, 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 | 8 | 0 | 2.33 |
Investors Bancorp | 0 | 0 | 4 | 0 | 3.00 |
The PNC Financial Services Group currently has a consensus price target of $147.4118, suggesting a potential downside of 12.44%. Investors Bancorp has a consensus price target of $10.25, suggesting a potential downside of 23.16%. Given The PNC Financial Services Group's higher possible upside, equities analysts plainly believe The PNC Financial Services Group is more favorable than Investors Bancorp.
Earnings & Valuation
This table compares The PNC Financial Services Group and Investors Bancorp's top-line 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 | 3.30 | $5.37 billion | $11.39 | 14.78 |
Investors Bancorp | $1.09 billion | 3.05 | $195.48 million | $0.77 | 17.32 |
The PNC Financial Services Group has higher revenue and earnings than Investors Bancorp. The PNC Financial Services Group is trading at a lower price-to-earnings ratio than Investors Bancorp, indicating that it is currently the more affordable of the two stocks.
Summary
The PNC Financial Services Group beats Investors Bancorp on 10 of the 16 factors compared between the two stocks.