Northrim BanCorp (NASDAQ:NRIM) and The PNC Financial Services Group (NYSE:PNC) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.
Dividends
Northrim BanCorp pays an annual dividend of $1.40 per share and has a dividend yield of 3.7%. The PNC Financial Services Group pays an annual dividend of $4.60 per share and has a dividend yield of 2.6%. Northrim BanCorp pays out 46.1% 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. Northrim BanCorp has raised its dividend for 10 consecutive years and The PNC Financial Services Group has raised its dividend for 1 consecutive years. Northrim BanCorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares Northrim BanCorp and The PNC Financial Services Group'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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Northrim BanCorp | $107.43 million | 2.18 | $20.69 million | $3.04 | 12.30 |
The PNC Financial Services Group | $21.62 billion | 3.51 | $5.37 billion | $11.39 | 15.71 |
The PNC Financial Services Group has higher revenue and earnings than Northrim BanCorp. Northrim BanCorp 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.
Analyst Ratings
This is a summary of current ratings and target prices for Northrim BanCorp and The PNC Financial Services Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Northrim BanCorp | 0 | 0 | 0 | 0 | N/A |
The PNC Financial Services Group | 1 | 12 | 8 | 0 | 2.33 |
The PNC Financial Services Group has a consensus price target of $147.4118, indicating a potential downside of 17.24%. Given The PNC Financial Services Group's higher probable upside, analysts clearly believe The PNC Financial Services Group is more favorable than Northrim BanCorp.
Institutional & Insider Ownership
68.3% of Northrim BanCorp shares are held by institutional investors. Comparatively, 80.6% of The PNC Financial Services Group shares are held by institutional investors. 2.7% of Northrim BanCorp shares are held by company insiders. Comparatively, 0.3% of The PNC Financial Services Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Northrim 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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Northrim BanCorp | 21.13% | 13.25% | 1.47% |
The PNC Financial Services Group | 38.16% | 5.97% | 0.69% |
Volatility & Risk
Northrim BanCorp has a beta of 0.78, suggesting that its stock price is 22% less 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.
Summary
The PNC Financial Services Group beats Northrim BanCorp on 11 of the 16 factors compared between the two stocks.