Analyzing PNC Financial Services Group (NYSE:PNC) and Westamerica Bancorporation (NYSE:WABC)
Westamerica Bancorporation (NASDAQ:WABC) and PNC Financial Services Group (NYSE:PNC) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.
Institutional and Insider Ownership
81.5% of Westamerica Bancorporation shares are owned by institutional investors. Comparatively, 79.4% of PNC Financial Services Group shares are owned by institutional investors. 4.4% of Westamerica Bancorporation shares are owned by company insiders. Comparatively, 0.4% of PNC Financial Services Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Westamerica Bancorporation and PNC Financial Services Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Westamerica Bancorporation||$199.87 million||8.71||$71.56 million||N/A||N/A|
|PNC Financial Services Group||$19.99 billion||3.33||$5.30 billion||$10.71||13.97|
PNC Financial Services Group has higher revenue and earnings than Westamerica Bancorporation.
Volatility and Risk
Westamerica Bancorporation has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, PNC Financial Services Group has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.
Westamerica Bancorporation pays an annual dividend of $1.64 per share and has a dividend yield of 2.5%. PNC Financial Services Group pays an annual dividend of $4.60 per share and has a dividend yield of 3.1%. PNC Financial Services Group pays out 43.0% of its earnings in the form of a dividend.
This is a breakdown of current recommendations for Westamerica Bancorporation and PNC Financial Services Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|PNC Financial Services Group||0||10||3||0||2.23|
Westamerica Bancorporation currently has a consensus target price of $58.00, indicating a potential downside of 9.85%. PNC Financial Services Group has a consensus target price of $143.89, indicating a potential downside of 3.82%. Given PNC Financial Services Group’s stronger consensus rating and higher probable upside, analysts clearly believe PNC Financial Services Group is more favorable than Westamerica Bancorporation.
This table compares Westamerica Bancorporation and PNC Financial Services Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|PNC Financial Services Group||24.96%||10.94%||1.34%|
Westamerica Bancorporation beats PNC Financial Services Group on 8 of the 15 factors compared between the two stocks.
About Westamerica Bancorporation
Westamerica Bancorporation provides banking solutions. The bank offers demand deposits and interest and non-interest bearing time and savings deposits. The company's deposits include jumbo deposits and retail time deposits. The company provides commercial and industrial loans, consumer loans, commercial real estate loans, and other loans and leases. The company offers consumer loans, including credit card loans, revolving credit plans, and automotive loans. The company offers commercial real estate loans for land development and on-site construction of industrial, commercial, residential, or farm buildings in the United States; real estate-backed residential loans; and commercial loans collateralized by real estate properties. The company offers domestic and foreign commercial and industrial loans. The bank offers loans for the purpose of financing agricultural production; loans which include planned and unplanned overdrafts, to governments in non-U.S. countries, to their official institutions, and to international and regional institutions. For 2017, the company has an asset value of 5.6 million USD. It has generated a net income of 71,564 USD in December 31, 2017. The company was formerly known as Independent Bankshares Corporation and changed its name to Westamerica Bancorporation in December 1982. Westamerica Bancorporation was founded in 1972 and is based in San Rafael, California.
About PNC Financial Services Group
The PNC Financial Services Group, Inc. operates as a diversified financial services company in the United States. The Retail Banking segment offers deposit, lending, brokerage, insurance, and investment and cash management services to consumer and small business customers through a network of branches, ATMs, call centers, and online banking and mobile channels. The Corporate & Institutional Banking segment provides secured and unsecured loans, letters of credit, and equipment leases; and cash and investment management, receivables management, disbursement, fund transfer, information reporting, and global trade services, as well as foreign exchange, derivative, security underwriting, loan syndication, merger and acquisition advisory, and equity capital market advisory related services for corporations, government, and not-for-profit entities. This segment also offers commercial loan servicing and technology solutions for the commercial real estate finance industry. The Asset Management Group segment provides investment and retirement planning, customized investment management, private banking, tailored credit, and trust management and administration solutions; and multi-generational family planning products, such as estate, financial, tax planning, fiduciary, investment management and consulting, private banking, personal administrative, asset custody, and customized performance reporting services. This segment also provides chief investment officer, custody, private real estate, cash and fixed income client solutions, and retirement administration services; and mutual funds and investment strategies. The BlackRock segment offers single- and multi-asset class portfolios; and investment and risk management services technology platform. As of December 31, 2018, it operated 2,372 branches and 9,162 ATMs. The PNC Financial Services Group, Inc. was founded in 1852 and is headquartered in Pittsburgh, Pennsylvania.
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