Contrasting PNC Financial Services Group (NYSE:PNC) and First Bancorp (NYSE:FNLC)

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

Volatility & Risk

PNC Financial Services Group has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, First Bancorp has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
PNC Financial Services Group 24.83% 10.91% 1.33%
First Bancorp 27.49% 12.40% 1.26%

Dividends

PNC Financial Services Group pays an annual dividend of $4.60 per share and has a dividend yield of 5.0%. First Bancorp pays an annual dividend of $1.20 per share and has a dividend yield of 6.0%. PNC Financial Services Group pays out 40.4% of its earnings in the form of a dividend. PNC Financial Services Group has increased its dividend for 9 consecutive years and First Bancorp has increased its dividend for 6 consecutive years.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PNC Financial Services Group 0 6 5 0 2.45
First Bancorp 0 0 0 0 N/A

PNC Financial Services Group presently has a consensus price target of $150.10, suggesting a potential upside of 63.06%. Given PNC Financial Services Group’s higher possible upside, equities analysts plainly believe PNC Financial Services Group is more favorable than First Bancorp.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PNC Financial Services Group $21.62 billion 1.83 $5.37 billion $11.39 8.08
First Bancorp $92.84 million 2.35 $25.52 million N/A N/A

PNC Financial Services Group has higher revenue and earnings than First Bancorp.

Institutional and Insider Ownership

82.6% of PNC Financial Services Group shares are owned by institutional investors. Comparatively, 34.2% of First Bancorp shares are owned by institutional investors. 0.3% of PNC Financial Services Group shares are owned by insiders. Comparatively, 8.3% of First Bancorp shares are owned 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 First Bancorp on 8 of the 15 factors compared between the two stocks.

About PNC Financial Services Group

The PNC Financial Services Group, Inc. operates as a diversified financial services company in the United States. The Retail Banking segment offers deposit, lending, brokerage, insurance, 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. The Corporate & Institutional Banking segment provides secured and unsecured loans, letters of credit, and equipment leases; and cash and investment management, receivables management, disbursement, fund transfer, information reporting, and global trade services, 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, tailored credit, and trust management and administration solutions; and 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. This segment also provides chief investment officer, custody, private real estate, cash and fixed income client solutions, and retirement administration services; and mutual funds and investment strategies. The BlackRock segment offers single- and multi-asset class portfolios; and investment and risk management services technology platform. As of December 31, 2018, it operated 2,372 branches and 9,162 ATMs. The PNC Financial Services Group, Inc. was founded in 1852 and is headquartered in Pittsburgh, Pennsylvania.

About First Bancorp

The First Bancorp, Inc. operates as the holding company for First National Bank that provides a range of banking products and services to individual and corporate customers. The company offers various deposit products, including demand, NOW, savings, money market, and certificates of deposit accounts. It also provides commercial loan products, such as mortgage loans to finance investments in real property comprising multi-family residential, commercial/retail, office, industrial, hotel, educational, and other specific or mixed use properties; loans to finance construction of owner- and non-owner occupied commercial real estate properties; and revolving and term loan obligations to business and corporate enterprises for the purpose of financing working capital or capital investment. In addition, the company offers municipal loans for capitalized expenditures, construction projects, or tax-anticipation notes; residential term loans that include amortizing home mortgages and construction loans, which include loans for owner-occupied residential construction; home equity loans and lines of credit; and consumer loans, which are amortizing loans to individuals collateralized by automobiles, pleasure crafts, and recreation vehicles, as well as unsecured short-term time notes. Further, it provides private banking, financial planning, investment management, and trust services to individuals, businesses, non-profit organizations, and municipalities. The First Bancorp, Inc. operates through 16 full-service banking offices in Lincoln, Knox, Hancock, Washington, and Penobscot counties in the Mid-Coast, Eastern, and Down East regions of Maine. The company was formerly known as First National Lincoln Corporation and changed its name to The First Bancorp, Inc. in April 2008. The First Bancorp, Inc. was founded in 1864 and is based in Damariscotta, Maine.

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