National Bankshares (NASDAQ:NKSH) and The PNC Financial Services Group (NYSE:PNC) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.
Profitability
This table compares National Bankshares and The PNC Financial Services Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
National Bankshares | 30.34% | 8.23% | 1.15% |
The PNC Financial Services Group | 38.16% | 5.97% | 0.69% |
Analyst Recommendations
This is a summary of current recommendations for National Bankshares and The PNC Financial Services Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
National Bankshares | 0 | 0 | 1 | 0 | 3.00 |
The PNC Financial Services Group | 1 | 12 | 7 | 0 | 2.30 |
National Bankshares currently has a consensus price target of $32.00, indicating a potential downside of 9.96%. The PNC Financial Services Group has a consensus price target of $160.1176, indicating a potential downside of 10.72%. Given National Bankshares' stronger consensus rating and higher possible upside, equities analysts plainly believe National Bankshares is more favorable than The PNC Financial Services Group.
Dividends
National Bankshares pays an annual dividend of $1.44 per share and has a dividend yield of 4.1%. The PNC Financial Services Group pays an annual dividend of $4.60 per share and has a dividend yield of 2.6%. National Bankshares pays out 54.3% 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. The PNC Financial Services Group has raised its dividend for 1 consecutive years.
Risk & Volatility
National Bankshares has a beta of 0.54, suggesting that its share price is 46% less 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.
Earnings & Valuation
This table compares National Bankshares and The PNC Financial Services Group's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
National Bankshares | $53.94 million | 4.22 | $17.47 million | $2.65 | 13.41 |
The PNC Financial Services Group | $21.62 billion | 3.52 | $5.37 billion | $11.39 | 15.75 |
The PNC Financial Services Group has higher revenue and earnings than National Bankshares. National Bankshares 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.
Institutional & Insider Ownership
29.1% of National Bankshares shares are owned by institutional investors. Comparatively, 80.6% of The PNC Financial Services Group shares are owned by institutional investors. 2.4% of National Bankshares 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
The PNC Financial Services Group beats National Bankshares on 9 of the 17 factors compared between the two stocks.