Financial Analysis: FCB Financial (FCB) vs. PNC Financial Services Group (PNC)

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

Valuation & Earnings

This table compares FCB Financial and PNC Financial Services Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FCB Financial $409.12 million 5.44 $125.19 million $3.28 14.51
PNC Financial Services Group $18.04 billion 3.60 $5.34 billion $8.50 16.44

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for FCB Financial and PNC Financial Services Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FCB Financial 0 4 2 0 2.33
PNC Financial Services Group 0 11 6 0 2.35

FCB Financial presently has a consensus price target of $56.20, suggesting a potential upside of 18.07%. PNC Financial Services Group has a consensus price target of $154.68, suggesting a potential upside of 10.68%. Given FCB Financial’s higher probable upside, equities research analysts plainly believe FCB Financial is more favorable than PNC Financial Services Group.

Dividends

PNC Financial Services Group pays an annual dividend of $3.80 per share and has a dividend yield of 2.7%. FCB Financial does not pay a dividend. PNC Financial Services Group pays out 44.7% of its earnings in the form of a dividend. PNC Financial Services Group has increased its dividend for 7 consecutive years.

Volatility & Risk

FCB Financial has a beta of 1.18, suggesting that its share price is 18% 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.

Institutional & Insider Ownership

92.5% of FCB Financial shares are owned by institutional investors. Comparatively, 79.8% of PNC Financial Services Group shares are owned by institutional investors. 9.6% of FCB Financial 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 company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
FCB Financial 29.07% 12.54% 1.39%
PNC Financial Services Group 30.40% 10.33% 1.28%

Summary

PNC Financial Services Group beats FCB Financial on 9 of the 17 factors compared between the two stocks.

FCB Financial Company Profile

FCB Financial Holdings, Inc. operates as the bank holding company for Florida Community Bank, N.A. that provides various financial products and services to individuals, small and medium-sized businesses, large businesses, and other local organizations and entities in south and central Florida. The company offers various deposit products, including demand deposit accounts, interest-bearing products, savings accounts, and certificates of deposit; checking products; and money market accounts and IRAs. It also offers consumer loans, such as personal and auto loans, recreational loans, and home improvement/second mortgage loans. In addition, the company provides commercial credit products, such as lines of credit to finance working capital and trade activities; loans for owner occupied real estate financing; equipment financing; acquisition financing; construction financing, mini-permanent and permanent financing, acquisition and development lending, land financing, and bridge lending services to commercial real estate clients; and specialty financing services to owners and operators in the areas of aviation and marine lending, as well as participates in club lending structures. Further, it offers syndicated loans; credit cards and purchasing cards; and derivative products, such as interest rate swaps; treasury products; securities brokerage services, investment advice, and investment recommendations; and online and mobile banking, safe deposit boxes, and payment services. As of December 31, 2017, FCB Financial Holdings, Inc. operated through a network of 46 banking centers in Florida. The company was formerly known as Bond Street Holdings, Inc. and changed its name to FCB Financial Holdings, Inc. in June 2014. FCB Financial Holdings, Inc. was founded in 1923 and is headquartered in Weston, Florida.

PNC Financial Services Group Company Profile

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.

Receive News & Ratings for FCB Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for FCB Financial and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply