Taylor Capital Group (NASDAQ: TAYC) and Pinnacle Financial Partners (NASDAQ:PNFP) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitabiliy, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Taylor Capital Group and Pinnacle Financial Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Taylor Capital Group 0 0 0 0 N/A
Pinnacle Financial Partners 0 3 3 0 2.50

Pinnacle Financial Partners has a consensus target price of $60.80, suggesting a potential downside of 3.18%. Given Pinnacle Financial Partners’ higher possible upside, analysts clearly believe Pinnacle Financial Partners is more favorable than Taylor Capital Group.

Profitability

This table compares Taylor Capital Group and Pinnacle Financial Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Taylor Capital Group N/A N/A N/A
Pinnacle Financial Partners 27.22% 9.78% 1.33%

Valuation & Earnings

This table compares Taylor Capital Group and Pinnacle Financial Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Taylor Capital Group N/A N/A N/A N/A N/A
Pinnacle Financial Partners $447.30 million 6.89 $149.29 million $3.04 20.66

Pinnacle Financial Partners has higher revenue and earnings than Taylor Capital Group.

Institutional and Insider Ownership

75.6% of Pinnacle Financial Partners shares are held by institutional investors. 5.4% of Pinnacle Financial Partners shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Pinnacle Financial Partners pays an annual dividend of $0.56 per share and has a dividend yield of 0.9%. Taylor Capital Group does not pay a dividend. Pinnacle Financial Partners pays out 18.4% of its earnings in the form of a dividend.

Summary

Pinnacle Financial Partners beats Taylor Capital Group on 9 of the 10 factors compared between the two stocks.

Taylor Capital Group Company Profile

Taylor Capital Group, Inc. is a bank holding company. The Company derives its revenue from its wholly owned subsidiary, Cole Taylor Bank (the Bank). It provides a range of products and services to closely-held commercial customers and their owner operators in the Chicago area. Its businesses are commercial banking, asset based lending, mortgage origination services and retail banking. The Bank’s primary businesses are commercial banking, asset based lending, mortgage banking services and retail banking. Its commercial lending activities consists of providing loans for working capital, business expansion or acquisition, owner-occupied commercial real estate financing, revolving lines of credit, and stand-by and commercial letters of credit. In August 2014, MB Financial Inc acquired Taylor Capital Group, Inc., and that Cole Taylor Bank has been merged into MB Financial Bank.

Pinnacle Financial Partners Company Profile

Pinnacle Financial Partners, Inc. is a bank holding company. The Company operates through its subsidiary, Pinnacle Bank. The Company operates as a community bank primarily in the urban markets of Nashville, Knoxville, Memphis and Chattanooga, Tennessee and other counties. It provides the personalized service associated with small community banks, while seeking to offer the products and services, such as investments and treasury management. Pinnacle Bank offers an array of convenience-centered products and services, including round the clock telephone and Internet banking, mobile banking, debit and credit cards, direct deposit, remote deposit and cash management services for small- to medium-sized businesses. In addition, Pinnacle Bank is associated with a network of automated teller machines of other financial institutions that its clients are able to use throughout Tennessee and other regions.

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