Head-To-Head Comparison: JPMorgan Chase & Co. (JPM) vs. PNC Financial Services Group (PNC)

JPMorgan Chase & Co. (NYSE:JPM) and PNC Financial Services Group (NYSE:PNC) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares JPMorgan Chase & Co. and PNC Financial Services Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
JPMorgan Chase & Co. 22.80% 13.18% 1.18%
PNC Financial Services Group 30.40% 10.33% 1.28%

Volatility & Risk

JPMorgan Chase & Co. has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, PNC Financial Services Group has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.

Dividends

JPMorgan Chase & Co. pays an annual dividend of $3.20 per share and has a dividend yield of 3.0%. PNC Financial Services Group pays an annual dividend of $3.80 per share and has a dividend yield of 3.1%. JPMorgan Chase & Co. pays out 46.6% of its earnings in the form of a dividend. PNC Financial Services Group pays out 44.7% 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. JPMorgan Chase & Co. has increased its dividend for 7 consecutive years and PNC Financial Services Group has increased its dividend for 7 consecutive years. PNC Financial Services Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

70.6% of JPMorgan Chase & Co. shares are owned by institutional investors. Comparatively, 79.8% of PNC Financial Services Group shares are owned by institutional investors. 0.7% of JPMorgan Chase & Co. 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares JPMorgan Chase & Co. and PNC Financial Services Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
JPMorgan Chase & Co. $113.90 billion 3.22 $24.44 billion $6.87 15.57
PNC Financial Services Group $18.04 billion 3.20 $5.34 billion $8.50 14.62

JPMorgan Chase & Co. has higher revenue and earnings than PNC Financial Services Group. PNC Financial Services Group is trading at a lower price-to-earnings ratio than JPMorgan Chase & Co., indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for JPMorgan Chase & Co. and PNC Financial Services Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JPMorgan Chase & Co. 0 8 14 0 2.64
PNC Financial Services Group 0 10 7 0 2.41

JPMorgan Chase & Co. presently has a consensus price target of $121.66, indicating a potential upside of 13.75%. PNC Financial Services Group has a consensus price target of $155.82, indicating a potential upside of 25.40%. Given PNC Financial Services Group’s higher probable upside, analysts clearly believe PNC Financial Services Group is more favorable than JPMorgan Chase & Co..

Summary

JPMorgan Chase & Co. beats PNC Financial Services Group on 9 of the 16 factors compared between the two stocks.

About JPMorgan Chase & Co.

JPMorgan Chase & Co. operates as a financial services company worldwide. It operates through four segments: Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management. The Consumer & Community Banking segment offers deposit and investment products and services to consumers; lending, deposit, and cash management and payment solutions to small businesses; residential mortgages and home equity loans; and credit cards, payment processing services, auto loans and leases. The Corporate & Investment Bank segment provides investment banking products and services, including advising on corporate strategy and structure, and capital-raising in equity and debt markets, as well as loan origination and syndication; treasury services, such as cash management and liquidity solutions; and cash securities and derivative instruments, risk management solutions, prime brokerage, and research. This segment also offers securities services, including custody, fund accounting and administration, and securities lending products for asset managers, insurance companies, and public and private investment funds. The Commercial Banking segment offers financial solutions, including lending, treasury, investment banking, and asset management to corporations, municipalities, financial institutions, and nonprofit entities, as well as financing to real estate investors and owners. The Asset & Wealth Management segment provides investment and wealth management services across various asset classes, such as equities, fixed income, alternatives, and money market funds; multi-asset investment management services; retirement services; and brokerage and banking services comprising trusts, estates, loans, mortgages, and deposits. JPMorgan Chase & Co. was founded in 1799 and is headquartered in New York, New York.

About PNC Financial Services Group

The PNC Financial Services Group, Inc. operates as a diversified financial services company in the United States and internationally. The company operates through four segments: Retail Banking, Corporate & Institutional Banking, Asset Management Group, and BlackRock. The Retail Banking segment offers deposit, lending, brokerage, 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. As of December 31, 2017, this segment operated a network of 2,459 branches and 9,051 ATMs. The Corporate & Institutional Banking segment provides secured and unsecured loans, letters of credit, and equipment lease; and cash and investment management, receivables management, disbursement, fund transfer, information reporting, and trade, 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, credit, and trust management and administration solutions; 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; advisory, custody, and retirement administration services; and mutual funds to high net worth and ultra high net worth clients, as well as institutions. The BlackRock segment offers investment and risk management services to institutional and retail clients. The PNC Financial Services Group, Inc. was founded in 1922 and is headquartered in Pittsburgh, Pennsylvania.

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