Head-To-Head Analysis: Pinnacle Financial Partners (PNFP) & Chemical Financial Corporation (CHFC)
Pinnacle Financial Partners (NASDAQ: PNFP) and Chemical Financial Corporation (NASDAQ:CHFC) are both mid-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.
This is a breakdown of current ratings and price targets for Pinnacle Financial Partners and Chemical Financial Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pinnacle Financial Partners||0||2||3||0||2.60|
|Chemical Financial Corporation||1||1||4||0||2.50|
This table compares Pinnacle Financial Partners and Chemical Financial Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pinnacle Financial Partners||27.41%||7.36%||1.18%|
|Chemical Financial Corporation||24.23%||8.05%||1.16%|
Valuation and Earnings
This table compares Pinnacle Financial Partners and Chemical Financial Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Pinnacle Financial Partners||$576.72 million||9.05||$250.82 million||$3.23||20.82|
|Chemical Financial Corporation||$630.88 million||6.07||$186.40 million||$2.62||20.56|
Pinnacle Financial Partners has higher revenue, but lower earnings than Chemical Financial Corporation. Chemical Financial Corporation is trading at a lower price-to-earnings ratio than Pinnacle Financial Partners, indicating that it is currently the more affordable of the two stocks.
Pinnacle Financial Partners pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. Chemical Financial Corporation pays an annual dividend of $1.12 per share and has a dividend yield of 2.1%. Pinnacle Financial Partners pays out 17.3% of its earnings in the form of a dividend. Chemical Financial Corporation pays out 42.7% 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.
Volatility & Risk
Pinnacle Financial Partners has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, Chemical Financial Corporation has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.
Insider & Institutional Ownership
69.7% of Pinnacle Financial Partners shares are held by institutional investors. Comparatively, 76.5% of Chemical Financial Corporation shares are held by institutional investors. 5.4% of Pinnacle Financial Partners shares are held by insiders. Comparatively, 2.2% of Chemical Financial Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Pinnacle Financial Partners beats Chemical Financial Corporation on 11 of the 16 factors compared between the two stocks.
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.
Chemical Financial Corporation Company Profile
Chemical Financial Corporation is a financial holding company. The Company operates in the commercial banking segment. The Company, through its subsidiary bank, Chemical Bank, offers banking and fiduciary products and services. These products and services include business and personal checking accounts, savings and individual retirement accounts, time deposit instruments, electronically accessed banking products, residential and commercial real estate financing, commercial lending, consumer financing, access to insurance and investment products, corporate and personal wealth management services, and other banking services. As of December 31, 2016, the Corporation and Chemical Bank served these markets through 249 banking offices. In addition to the banking offices, Chemical Bank operated eight loan production offices and over 272 automated teller machines, both on- and off-bank premises, as of December 31, 2016. Its loan portfolio includes commercial and real estate construction.
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