The PNC Financial Services Group (NYSE:PNC) and Citigroup (NYSE:C) are both large-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.
Profitability
This table compares The PNC Financial Services Group and Citigroup'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% |
Citigroup | 13.17% | 6.63% | 0.52% |
Risk and Volatility
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. Comparatively, Citigroup has a beta of 1.95, suggesting that its stock price is 95% 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 2.6%. Citigroup pays an annual dividend of $2.04 per share and has a dividend yield of 2.9%. The PNC Financial Services Group pays out 40.4% of its earnings in the form of a dividend. Citigroup pays out 41.8% 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 Citigroup has increased its dividend for 1 consecutive years.
Analyst Ratings
This is a summary of current ratings and target prices for The PNC Financial Services Group and Citigroup, as reported by MarketBeat.
| 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 |
Citigroup | 1 | 7 | 16 | 0 | 2.63 |
The PNC Financial Services Group currently has a consensus price target of $174.00, indicating a potential upside of 0.09%. Citigroup has a consensus price target of $74.9318, indicating a potential upside of 7.34%. Given Citigroup's stronger consensus rating and higher probable upside, analysts clearly believe Citigroup is more favorable than The PNC Financial Services Group.
Valuation and Earnings
This table compares The PNC Financial Services Group and Citigroup's 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 | 3.41 | $5.37 billion | $11.39 | 15.26 |
Citigroup | $88.84 billion | 1.64 | $11.37 billion | $4.88 | 14.31 |
Citigroup has higher revenue and earnings than The PNC Financial Services Group. Citigroup 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.
Institutional and Insider Ownership
80.6% of The PNC Financial Services Group shares are held by institutional investors. Comparatively, 73.0% of Citigroup shares are held by institutional investors. 0.3% of The PNC Financial Services Group shares are held by insiders. Comparatively, 0.1% of Citigroup shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Citigroup beats The PNC Financial Services Group on 9 of the 16 factors compared between the two stocks.