Head-To-Head Contrast: Northrim BanCorp (NASDAQ:NRIM) and The PNC Financial Services Group (NYSE:PNC)

The PNC Financial Services Group (NYSE:PNC) and Northrim BanCorp (NASDAQ:NRIM) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Risk and Volatility

The PNC Financial Services Group has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Northrim BanCorp has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for The PNC Financial Services Group and Northrim BanCorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The PNC Financial Services Group	0	4	16	1	2.86
Northrim BanCorp	0	2	2	0	2.50

The PNC Financial Services Group presently has a consensus price target of $267.87, suggesting a potential upside of 17.54%. Northrim BanCorp has a consensus price target of $30.00, suggesting a potential upside of 19.52%. Given Northrim BanCorp’s higher probable upside, analysts clearly believe Northrim BanCorp is more favorable than The PNC Financial Services Group.

Institutional & Insider Ownership

83.5% of The PNC Financial Services Group shares are held by institutional investors. Comparatively, 66.0% of Northrim BanCorp shares are held by institutional investors. 0.4% of The PNC Financial Services Group shares are held by insiders. Comparatively, 2.4% of Northrim BanCorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares The PNC Financial Services Group and Northrim BanCorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The PNC Financial Services Group	21.41%	12.48%	1.31%
Northrim BanCorp	26.03%	17.33%	1.72%

Dividends

The PNC Financial Services Group pays an annual dividend of $8.00 per share and has a dividend yield of 3.5%. Northrim BanCorp pays an annual dividend of $0.68 per share and has a dividend yield of 2.7%. The PNC Financial Services Group pays out 44.0% of its earnings in the form of a dividend. Northrim BanCorp pays out 22.4% 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. The PNC Financial Services Group has increased its dividend for 14 consecutive years and Northrim BanCorp has increased its dividend for 16 consecutive years.

Valuation and Earnings

This table compares The PNC Financial Services Group and Northrim BanCorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The PNC Financial Services Group	$34.00 billion	2.67	$6.94 billion	$18.17	12.54
Northrim BanCorp	$255.58 million	2.19	$64.61 million	$3.04	8.26

The PNC Financial Services Group has higher revenue and earnings than Northrim BanCorp. Northrim BanCorp 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 Northrim BanCorp on 11 of the 18 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 Northrim BanCorp

Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professional individuals. It operates through two segments, Community Banking and Home Mortgage Lending. The company offers noninterest-bearing checking accounts and interest-bearing time deposits, checking and savings accounts, individual retirement and money market deposit accounts, certificates of deposit, and business sweep accounts. It also provides short and medium-term commercial loans, commercial credit lines, construction and real estate loans, and consumer loans, as well as short-term working capital. In addition, the company offers other services comprising consumer and business online banking, mobile app, and mobile deposits; and debit and credit cards. Further, it provides mobile web and app banking, consumer online account opening, personal finance, online documents, consumer debit cards, business debit cards, my rewards for consumer debit cards, retail lockbox, card control, corporate purchase cards, integrated payables, home equity advantage access cards, telebanking, and automated teller services. Additionally, the company offers personalized checks at account opening, overdraft protection from a savings account, commercial drive-up banking, automatic transfer and payment, People Pay, external transfer, Bill Pay, wire transfer, direct payroll deposit, electronic tax payment, Automated Clearing House origination and receipt, remote deposit capture, account reconciliation and positive pay, merchant, cash management, annuity, and long-term investment portfolio products and services. It also provides investment advisory, trust, wealth management, factoring, and mortgage services. The company was founded in 1990 and is headquartered in Anchorage, Alaska.