The PNC Financial Services Group (NYSE:PNC – Get Free Report) and SBI (OTCMKTS:SBHGF – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.
Insider & Institutional Ownership
83.5% of The PNC Financial Services Group shares are owned by institutional investors. 0.4% of The PNC Financial Services Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares The PNC Financial Services Group and SBI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| The PNC Financial Services Group | 20.40% | 11.87% | 1.23% |
| SBI | 16.99% | 15.66% | 0.87% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| The PNC Financial Services Group | $23.08 billion | 3.54 | $6.94 billion | $16.59 | 12.20 |
| SBI | $9.48 billion | 0.63 | $1.07 billion | $5.81 | 3.10 |
The PNC Financial Services Group has higher revenue and earnings than SBI. SBI 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 Recommendations
This is a breakdown of recent ratings and price targets for The PNC Financial Services Group and SBI, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| The PNC Financial Services Group | 1 | 5 | 15 | 1 | 2.73 |
| SBI | 0 | 0 | 0 | 0 | 0.00 |
The PNC Financial Services Group presently has a consensus target price of $234.16, suggesting a potential upside of 15.66%. Given The PNC Financial Services Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe The PNC Financial Services Group is more favorable than SBI.
Volatility and Risk
The PNC Financial Services Group has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, SBI has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.
Summary
The PNC Financial Services Group beats SBI on 14 of the 15 factors compared between the two stocks.
About The PNC Financial Services Group
The PNC Financial Services Group, Inc. operates as a diversified financial services company in the United States. It operates through three segments: Retail Banking, Corporate & Institutional Banking, and Asset Management Group segments. The company's Retail Banking segment offers checking, savings, and money market accounts, as well as time deposit; residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans, and personal and small business loans and lines of credit; and brokerage, insurance, and investment and cash management services. This segment serves consumer and small business customers through a network of branches, digital channels, ATMs, and through phone-based customer contact centers. Its Corporate & Institutional Banking segment provides secured and unsecured loans, letters of credit, and equipment leases; cash and investment management services, receivables and disbursement management services, funds transfer services, international payment services, and access to online/mobile information management and reporting; securities underwriting, loan syndications, customer-related trading, and mergers and acquisitions and equity capital markets advisory related services; and commercial loan servicing and technology solutions. It serves mid-sized and large corporations, and government and not-for-profit entities. The company's Asset Management Group segment offers investment and retirement planning, customized investment management, credit and cash management solutions, and trust management and administration services for high net worth and ultra high net worth individuals, and their families; and multi-generational family planning services for ultra high net worth individuals and their families. It also provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, and retirement plan fiduciary investment services for institutional clients. The company was founded in 1852 and is headquartered in Pittsburgh, Pennsylvania.
About SBI
SBI Holdings, Inc. engages in the online securities and investment businesses. It operates through five business segments: Financial Services Business, Asset Management Business, Investment Business, Crypto-Asset Business, and Non-financial Business segments. The Financial Services Business segment consists of a range of finance-related business, including securities brokerage business; banking services business; and life, property, and casualty insurance business. The Asset Management Business segment includes setting, solicitation, and management of investment trust; investment advice; and financial products information. The Investment Business segment includes fund management and investment in Internet technology, fintech, blockchain, finance, and biotechnology-related venture companies; private equity; and funds management businesses. The Crypto-asset Business segment provides crypto-asset exchange and trading services. The Non-Financial Business segment consists of biotechnology; development and distribution of pharmaceutical products, health foods, and cosmetics with 5-aminolevulinic acid; research and development of antibody drugs and nucleic acid medicine in the field of cancer and immunology; the digitization of medical and health information; provision of solutions and services that promote the use of medical big data, medical finance; business working on advanced fields related to Web 3.0; and renewable energy business. The company is also involved in the real estate secured loans, online mobile game, and e-sports related businesses. In addition, it operates and develops cybersecurity systems; exports used cars; offers back-office support services; and develops, operates, manages, and invests in real estate properties. The company was formerly known as Softbank Investment Corporation and changed its name to SBI Holdings, Inc. in July 2005. SBI Holdings, Inc. was incorporated in 1999 and is headquartered in Tokyo, Japan.
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