The PNC Financial Services Group (NYSE:PNC) and Pacific Mercantile Bancorp (NASDAQ:PMBC) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.
Risk & Volatility
The PNC Financial Services Group has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, Pacific Mercantile Bancorp has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.
Earnings & Valuation
This table compares The PNC Financial Services Group and Pacific Mercantile Bancorp's gross revenue, earnings per share (EPS) 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 | 3.37 | $5.37 billion | $11.39 | 15.08 |
Pacific Mercantile Bancorp | $71.26 million | 2.65 | $5.68 million | N/A | N/A |
The PNC Financial Services Group has higher revenue and earnings than Pacific Mercantile Bancorp.
Analyst Ratings
This is a summary of current ratings for The PNC Financial Services Group and Pacific Mercantile Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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The PNC Financial Services Group | 1 | 12 | 9 | 0 | 2.36 |
Pacific Mercantile Bancorp | 0 | 0 | 1 | 0 | 3.00 |
The PNC Financial Services Group currently has a consensus price target of $174.00, indicating a potential upside of 1.32%. Pacific Mercantile Bancorp has a consensus price target of $12.00, indicating a potential upside of 41.84%. Given Pacific Mercantile Bancorp's stronger consensus rating and higher possible upside, analysts clearly believe Pacific Mercantile Bancorp is more favorable than The PNC Financial Services Group.
Insider and Institutional Ownership
80.6% of The PNC Financial Services Group shares are owned by institutional investors. Comparatively, 62.3% of Pacific Mercantile Bancorp shares are owned by institutional investors. 0.3% of The PNC Financial Services Group shares are owned by insiders. Comparatively, 4.7% of Pacific Mercantile Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares The PNC Financial Services Group and Pacific Mercantile 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% |
Pacific Mercantile Bancorp | 7.40% | 3.37% | 0.32% |
Summary
The PNC Financial Services Group beats Pacific Mercantile Bancorp on 9 of the 13 factors compared between the two stocks.