UBS Group (NYSE:UBS) and The PNC Financial Services Group (NYSE:PNC) are both large-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.
Analyst Ratings
This is a summary of current ratings for UBS Group and The PNC Financial Services Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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UBS Group | 1 | 6 | 8 | 0 | 2.47 |
The PNC Financial Services Group | 1 | 12 | 8 | 0 | 2.33 |
The PNC Financial Services Group has a consensus price target of $147.7059, indicating a potential downside of 14.68%. Given The PNC Financial Services Group's higher probable upside, analysts plainly believe The PNC Financial Services Group is more favorable than UBS Group.
Risk and Volatility
UBS Group has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, 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.
Dividends
UBS Group pays an annual dividend of $0.12 per share and has a dividend yield of 0.8%. The PNC Financial Services Group pays an annual dividend of $4.60 per share and has a dividend yield of 2.7%. UBS Group pays out 10.5% 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. UBS Group has increased its dividend for 1 consecutive years and The PNC Financial Services Group has increased its dividend for 1 consecutive years.
Institutional & Insider Ownership
30.6% of UBS Group shares are owned by institutional investors. Comparatively, 80.6% of The PNC Financial Services Group shares are owned by institutional investors. 1.0% of UBS Group shares are owned by insiders. Comparatively, 0.3% of The PNC Financial Services Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares UBS 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 |
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UBS Group | 17.34% | 9.82% | 0.54% |
The PNC Financial Services Group | 38.16% | 5.97% | 0.69% |
Valuation & Earnings
This table compares UBS Group and The PNC Financial Services Group's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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UBS Group | $28.31 billion | 2.02 | $4.30 billion | $1.14 | 13.69 |
The PNC Financial Services Group | $21.62 billion | 3.38 | $5.37 billion | $11.39 | 15.14 |
The PNC Financial Services Group has lower revenue, but higher earnings than UBS Group. UBS Group 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.
Summary
The PNC Financial Services Group beats UBS Group on 9 of the 15 factors compared between the two stocks.