The PNC Financial Services Group (NYSE:PNC) and Bank of Hawaii (NYSE:BOH) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.
Analyst Recommendations
This is a summary of current recommendations for The PNC Financial Services Group and Bank of Hawaii, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
The PNC Financial Services Group | 1 | 12 | 8 | 0 | 2.33 |
Bank of Hawaii | 0 | 1 | 1 | 0 | 2.50 |
The PNC Financial Services Group currently has a consensus price target of $147.7059, indicating a potential downside of 14.96%. Bank of Hawaii has a consensus price target of $61.00, indicating a potential downside of 31.11%. Given The PNC Financial Services Group's higher possible upside, research analysts clearly believe The PNC Financial Services Group is more favorable than Bank of Hawaii.
Profitability
This table compares The PNC Financial Services Group and Bank of Hawaii's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
The PNC Financial Services Group | 38.16% | 5.97% | 0.69% |
Bank of Hawaii | 22.62% | 12.73% | 0.89% |
Institutional & Insider Ownership
80.6% of The PNC Financial Services Group shares are owned by institutional investors. Comparatively, 72.8% of Bank of Hawaii shares are owned by institutional investors. 0.3% of The PNC Financial Services Group shares are owned by insiders. Comparatively, 2.1% of Bank of Hawaii shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares The PNC Financial Services Group and Bank of Hawaii's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
The PNC Financial Services Group | $21.62 billion | 3.38 | $5.37 billion | $11.39 | 15.15 |
Bank of Hawaii | $770.73 million | 4.61 | $225.91 million | $5.56 | 15.94 |
The PNC Financial Services Group has higher revenue and earnings than Bank of Hawaii. The PNC Financial Services Group is trading at a lower price-to-earnings ratio than Bank of Hawaii, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
The PNC Financial Services Group has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Bank of Hawaii has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.
Dividends
The PNC Financial Services Group pays an annual dividend of $4.60 per share and has a dividend yield of 2.7%. Bank of Hawaii pays an annual dividend of $2.68 per share and has a dividend yield of 3.0%. The PNC Financial Services Group pays out 40.4% of its earnings in the form of a dividend. Bank of Hawaii pays out 48.2% 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 increased its dividend for 1 consecutive years and Bank of Hawaii has increased its dividend for 1 consecutive years.
Summary
The PNC Financial Services Group beats Bank of Hawaii on 9 of the 16 factors compared between the two stocks.