Central Pacific Financial (NYSE:CPF) and The PNC Financial Services Group (NYSE:PNC) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.
Institutional and Insider Ownership
84.5% of Central Pacific Financial shares are held by institutional investors. Comparatively, 80.6% of The PNC Financial Services Group shares are held by institutional investors. 3.7% of Central Pacific Financial 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Central Pacific Financial and The PNC Financial Services Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Central Pacific Financial | 15.44% | 7.31% | 0.62% |
The PNC Financial Services Group | 38.16% | 5.97% | 0.69% |
Dividends
Central Pacific Financial pays an annual dividend of $0.92 per share and has a dividend yield of 4.1%. The PNC Financial Services Group pays an annual dividend of $4.60 per share and has a dividend yield of 2.7%. Central Pacific Financial pays out 45.3% 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. Central Pacific Financial has raised its dividend for 1 consecutive years and The PNC Financial Services Group has raised its dividend for 1 consecutive years.
Earnings & Valuation
This table compares Central Pacific Financial and The PNC Financial Services Group's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Central Pacific Financial | $258.18 million | 2.47 | $58.32 million | $2.03 | 11.15 |
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 Central Pacific Financial. Central Pacific Financial 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.
Analyst Ratings
This is a summary of recent ratings for Central Pacific Financial and The PNC Financial Services Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Central Pacific Financial | 0 | 0 | 2 | 0 | 3.00 |
The PNC Financial Services Group | 1 | 12 | 8 | 0 | 2.33 |
Central Pacific Financial currently has a consensus target price of $23.00, indicating a potential upside of 1.63%. The PNC Financial Services Group has a consensus target price of $147.4118, indicating a potential downside of 12.44%. Given Central Pacific Financial's stronger consensus rating and higher probable upside, analysts clearly believe Central Pacific Financial is more favorable than The PNC Financial Services Group.
Volatility and Risk
Central Pacific Financial has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, 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.
Summary
The PNC Financial Services Group beats Central Pacific Financial on 9 of the 16 factors compared between the two stocks.