Case Study: PNC Financial Services Group (NYSE:PNC) Vs. Synovus Financial (NYSE:SNV)

PNC Financial Services Group (NYSE:PNC – Get Your Free Report ) and Synovus Financial (NYSE:SNV – Get Your Free Report ) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Institutional and privileged ownership

83.5% of PNC Financial Services Group shares are owned by institutional investors. Comparatively, 83.9% of Synovus Financial shares are held by institutional investors. 0.4% of PNC Financial Services Group shares are held by company insiders. Comparatively, 0.8% of Synovus Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, big money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Rating

This table compares The PNC Financial Services Group and Synovus Financial’s gross revenue, earnings per share and valuation.

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

Analyst ratings

This is a breakdown of recent recommendations and price targets for The PNC Financial Services Group and Synovus Financial, as reported by MarketBeat.

PNC Financial Services Group currently has a consensus target price of $177.02, indicating a potential downside of 2.93%. Synovus Financial has a consensus target price of $46.44, indicating a potential upside of 5.47%. Given Synovus Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Synovus Financial is more favorable than PNC Financial Services Group.

Risk and volatility

PNC Financial Services Group has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Synovus Financial has a beta of 1.39, indicating that its stock price is its stock is 39% more volatile than the S&P 500. .

dividends

PNC Financial Services Group pays an annual dividend of $6.40 per share and has a dividend yield of 3.5%. Synovus Financial pays an annual dividend of $1.52 per share and has a dividend yield of 3.5%. PNC Financial Services Group pays out 53.7% of earnings as dividends. Synovus Financial pays out 52.1% of earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next few years. PNC Financial Services Group has increased its dividend for 14 consecutive years. Financial services group PNC is clearly the better dividend stock given its higher yield and longer track record of dividend growth.

return

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

Summary

PNC Financial Services Group beats Synovus Financial in 9 of the 17 factors compared between the two stocks.

About PNC Financial Services Group

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PNC Financial Services Group, Inc. operates as a diversified financial services company in the United States. It operates through three segments: Retail Banking, Corporate & Institutional Banking and Asset Management Group segments. The company’s Retail Banking segment offers checking, savings and money market accounts, as well as time deposit; residential mortgages, home loans and lines of credit, auto loans, credit cards, education loans, and personal and small business loans and lines of credit; and brokerage, insurance and investment services and cash management. This segment serves consumer and small business customers through a network of branches, digital channels, ATMs and telephone customer contact centers. Its Corporate & Institutional Banking segment offers secured and unsecured loans, letters of credit and equipment leasing; Cash and investment management services, receivables and payment management services, funds transfer services, international payment services and access to online/mobile information management and reporting; securities underwriting, loan syndication, customer related transactions, mergers and acquisitions and capital markets advisory services; and commercial lending services and technology solutions. It serves medium and large corporations, as well as government and non-profit entities. The company’s Asset Management Group segment provides investment and retirement planning, customized investment management solutions, credit and cash management solutions, and trust administration and management services for high net worth and ultra high net worth individuals and their families ; and multi-generational family planning services for ultra-high net worth individuals and their families. It also provides outsourced chief investment officer, custody, solutions for private real estate clients, cash and fixed income, and fiduciary investment services for retirement plans for institutional clients. The company was founded in 1852 and is headquartered in Pittsburgh, Pennsylvania.

About Synovus Financial

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Synovus Financial Corp. operates as the bank holding company for Synovus Bank providing commercial and consumer banking products and services. It operates through four segments: Community Banking, Wholesale Banking, Consumer Banking and Financial Management Services. The company’s commercial banking services include treasury and asset management, capital market and institutional trust services, as well as commercial, financial and real estate lending services. Its consumer banking services include accepting the usual types of checking accounts and savings deposits; mortgages, installments and other consumer loans; investment and brokerage services; warehouse services; automated banking services; automatic fund transfers; Internet banking services; and credit and debit card banking, including Visa and MasterCard services. The company also provides various other financial services, including fixed income portfolio management, investment banking, securities broker/dealer execution, trust management and financial planning services, as well as consulting individual regarding investments in shares and other securities. The company was founded in 1888 and is headquartered in Columbus, Georgia.

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