Old National Bancorp (NASDAQ:ONB) and The PNC Financial Services Group (NYSE:PNC) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.
Profitability
This table compares Old National 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 |
|---|
| Old National Bancorp | 22.51% | 7.99% | 1.07% |
| The PNC Financial Services Group | 38.16% | 5.97% | 0.69% |
Insider & Institutional Ownership
68.2% of Old National Bancorp shares are held by institutional investors. Comparatively, 79.5% of The PNC Financial Services Group shares are held by institutional investors. 1.6% of Old National Bancorp shares are held by insiders. Comparatively, 0.3% of The PNC Financial Services Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Old National Bancorp has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, The PNC Financial Services Group has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Old National Bancorp and The PNC Financial Services Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Old National Bancorp | 0 | 3 | 0 | 0 | 2.00 |
| The PNC Financial Services Group | 1 | 10 | 8 | 0 | 2.37 |
Old National Bancorp currently has a consensus target price of $15.3333, indicating a potential downside of 8.68%. The PNC Financial Services Group has a consensus target price of $128.40, indicating a potential downside of 8.71%. Given Old National Bancorp's higher probable upside, research analysts plainly believe Old National Bancorp is more favorable than The PNC Financial Services Group.
Dividends
Old National Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.3%. The PNC Financial Services Group pays an annual dividend of $4.60 per share and has a dividend yield of 3.3%. Old National Bancorp pays out 38.6% 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. Old National Bancorp has increased its dividend for 1 consecutive years and The PNC Financial Services Group has increased its dividend for 9 consecutive years. Old National Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Old National Bancorp 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 |
|---|
| Old National Bancorp | $929.70 million | 2.99 | $238.21 million | $1.45 | 11.58 |
| The PNC Financial Services Group | $21.62 billion | 2.76 | $5.37 billion | $11.39 | 12.35 |
The PNC Financial Services Group has higher revenue and earnings than Old National Bancorp. Old National 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.
Summary
The PNC Financial Services Group beats Old National Bancorp on 9 of the 17 factors compared between the two stocks.
