MidWestOne Financial Group (NASDAQ:MOFG) and The PNC Financial Services Group (NYSE:PNC) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.
Insider & Institutional Ownership
56.9% of MidWestOne Financial Group shares are owned by institutional investors. Comparatively, 80.6% of The PNC Financial Services Group shares are owned by institutional investors. 2.4% of MidWestOne Financial Group shares are owned by insiders. Comparatively, 0.3% of The PNC Financial Services Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares MidWestOne Financial Group and The PNC Financial Services Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| MidWestOne Financial Group | 1.45% | 7.33% | 0.75% |
| The PNC Financial Services Group | 38.16% | 5.97% | 0.69% |
Earnings and Valuation
This table compares MidWestOne Financial Group 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 |
|---|
| MidWestOne Financial Group | $213.69 million | 2.22 | $43.63 million | $3.40 | 8.65 |
| The PNC Financial Services Group | $21.62 billion | 3.40 | $5.37 billion | $11.39 | 15.22 |
The PNC Financial Services Group has higher revenue and earnings than MidWestOne Financial Group. MidWestOne Financial Group 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.
Dividends
MidWestOne Financial Group pays an annual dividend of $0.90 per share and has a dividend yield of 3.1%. The PNC Financial Services Group pays an annual dividend of $4.60 per share and has a dividend yield of 2.7%. MidWestOne Financial Group pays out 26.5% 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. MidWestOne Financial Group has raised its dividend for 1 consecutive years and The PNC Financial Services Group has raised its dividend for 1 consecutive years. MidWestOne Financial Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility and Risk
MidWestOne Financial Group has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, 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.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for MidWestOne Financial Group and The PNC Financial Services Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| MidWestOne Financial Group | 0 | 1 | 1 | 0 | 2.50 |
| The PNC Financial Services Group | 1 | 12 | 8 | 0 | 2.33 |
MidWestOne Financial Group presently has a consensus target price of $22.25, indicating a potential downside of 24.37%. The PNC Financial Services Group has a consensus target price of $147.7059, indicating a potential downside of 14.70%. Given The PNC Financial Services Group's higher possible upside, analysts clearly believe The PNC Financial Services Group is more favorable than MidWestOne Financial Group.
Summary
The PNC Financial Services Group beats MidWestOne Financial Group on 9 of the 16 factors compared between the two stocks.
