SVB Financial Group (NASDAQ:SIVB) and The PNC Financial Services Group (NYSE:PNC) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.
Profitability
This table compares SVB 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 |
---|
SVB Financial Group | 28.60% | 15.40% | 1.31% |
The PNC Financial Services Group | 38.16% | 5.97% | 0.69% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for SVB Financial Group and The PNC Financial Services Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
SVB Financial Group | 0 | 7 | 9 | 0 | 2.56 |
The PNC Financial Services Group | 1 | 12 | 8 | 0 | 2.33 |
SVB Financial Group presently has a consensus price target of $422.9333, suggesting a potential downside of 16.31%. The PNC Financial Services Group has a consensus price target of $147.4118, suggesting a potential downside of 12.44%. Given The PNC Financial Services Group's higher possible upside, analysts plainly believe The PNC Financial Services Group is more favorable than SVB Financial Group.
Institutional & Insider Ownership
88.4% of SVB Financial Group shares are owned by institutional investors. Comparatively, 80.6% of The PNC Financial Services Group shares are owned by institutional investors. 0.8% of SVB Financial Group shares are owned by company insiders. Comparatively, 0.3% of The PNC Financial Services Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
SVB Financial Group has a beta of 2.14, suggesting that its share price is 114% 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.
Valuation & Earnings
This table compares SVB Financial Group 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 |
---|
SVB Financial Group | $3.53 billion | 7.41 | $1.14 billion | $21.73 | 23.26 |
The PNC Financial Services Group | $21.62 billion | 3.30 | $5.37 billion | $11.39 | 14.78 |
The PNC Financial Services Group has higher revenue and earnings than SVB Financial Group. The PNC Financial Services Group is trading at a lower price-to-earnings ratio than SVB Financial Group, indicating that it is currently the more affordable of the two stocks.
Summary
SVB Financial Group beats The PNC Financial Services Group on 10 of the 14 factors compared between the two stocks.