Financial review: Comerica (NYSE: CMA) and The PNC Financial Services Group (NYSE: PNC)


Comerica (NYSE:CMA – Get Rating) and The PNC Financial Services Group (NYSE:PNC – Get Rating) are both large-cap financials, but which stock is superior? We’ll compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.

Volatility and risk

Comerica has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. In comparison, PNC Financial Services Group has a beta of 1.26, indicating that its stock price is its stock is 26% more volatile than the S&P 500.

Profitability

This table compares the net margins, return on equity and return on assets of Comerica and The PNC Financial Services Group.

Net margins Return on equity return on assets
Comedy 38.62% 15.47% 1.28%
PNC Financial Services Group 28.81% 12.86% 1.33%

Dividends

Comerica pays an annual dividend of $2.72 per share and has a dividend yield of 3.1%. PNC Financial Services Group pays an annual dividend of $5.00 per share and has a dividend yield of 2.8%. Comerica pays 32.7% of its profits as a dividend. The PNC Financial Services group distributes 39.4% of its profits in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. The PNC Financial Services group has increased its dividend for 12 consecutive years. Comerica is clearly the best dividend-paying stock, given its higher yield and lower payout ratio.

Analyst Notes

This is a breakdown of current ratings and target prices for Comerica and The PNC Financial Services Group, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Comedy 3 5 11 0 2.42
PNC Financial Services Group 1 ten ten 0 2.43

Comerica currently has a consensus price target of $102.26, suggesting a potential upside of 14.73%. PNC Financial Services Group has a consensus price target of $219.76, suggesting a potential upside of 23.16%. Given the stronger consensus rating of PNC Financial Services Group and the higher possible upside, analysts clearly believe that PNC Financial Services Group is more favorable than Comerica.

Valuation and benefits

This table compares the revenue, earnings per share (EPS) and valuation of Comerica and The PNC Financial Services Group.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Comedy $3.02 billion 3.86 $1.17 billion $8.31 10.73
PNC Financial Services Group $19.70 billion 3.79 $5.67 billion $12.69 14.06

Financial services group PNC has higher revenues and profits than Comerica. Comerica trades at a lower price-to-earnings ratio than PNC Financial Services Group, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

79.7% of Comerica shares are held by institutional investors. By comparison, 82.6% of shares in The PNC Financial Services Group are held by institutional investors. 0.8% of Comerica shares are held by insiders. By comparison, 0.3% of The PNC Financial Services Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers, and hedge funds believe a company is poised for long-term growth.

Summary

PNC Financial Services group beats Comerica on 9 of the 17 factors compared between the two stocks.

Comerica Company Profile (Get a rating)

Comerica Incorporated, through its subsidiaries, offers various financial products and services. It operates through commercial banking, retail banking, wealth management and finance segments. The Commercial Banking segment offers various products and services, including commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, management services foreign exchange and loan syndication services for small and medium market businesses. , multinationals and government entities. The Retail Banking segment provides personal financial services, such as consumer loans, collection of consumer deposits and origination of mortgage loans. This segment also offers various consumer products, including deposit accounts, installment loans, credit cards, student loans, home equity lines of credit and residential mortgages, as well as commercial products and services to micro-enterprises. The Wealth Management segment provides products and services comprising trust, private banking, retirement, investment management and advisory, and investment banking and brokerage. This segment also sells annuity products, as well as life, disability and long-term care insurance products. The Finance segment is engaged in securities portfolio and asset and liability management business. It operates in Texas, California, Michigan, Arizona, Florida, Canada and Mexico. The company was formerly known as DETROITBANK Corporation and changed its name to Comerica Incorporated in July 1982. Comerica Incorporated was founded in 1849 and is headquartered in Dallas, Texas.

PNC Financial Services Group Company Profile (Get a rating)

The logo of the PNC Financial Services groupThe PNC Financial Services Group, Inc. operates as a diversified financial services company in the United States. The Company’s Retail Banking segment offers brokerage, insurance, investment and cash management services; checking, savings and money market accounts; certificates of deposit; and lending products, which include residential mortgages, home equity loans and lines of credit, auto loans, education loans and personal and small business loans, as well as consumer credit cards and to small businesses through a network of branches, ATMs, call centers, and online and mobile banking channels. Its Corporate & Institutional Banking segment provides secured and unsecured loans, letters of credit and equipment leases; cash and investment management services, receivables and disbursement management services, funds transfer services, international payment services and access to online/mobile information management and reporting services; foreign exchange trading, derivatives, fixed income securities, securities underwriting, loan syndications, mergers and acquisitions and equity capital markets advisory services; and commercial lending services and technology solutions for the commercial real estate finance industry. The Company’s Asset Management Group segment offers investment and retirement planning solutions, personalized investment management, credit and cash management solutions, private banking, and management and administration solutions. trustees; and multi-generational family planning products, such as estate, financial, tax, fiduciary planning and personalized performance reporting services. This segment also provides outsourced investment manager, custody, private real estate, cash and fixed income, and pension trust advisory services. As of December 31, 2021, it operated 2,629 branches and 9,523 ATMs. The PNC Financial Services Group, Inc. was founded in 1852 and is headquartered in Pittsburgh, Pennsylvania.



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