Analysis of PNC Financial Services Group (NYSE: PNC) and Hawthorn Bancshares (NASDAQ: HWBK)
Hawthorn Bancshares (NASDAQ: HWBK – Get a rating) and the financial services group PNC (New York Stock Exchange: PNC – Get a rating) are both finance companies, but which company is superior? We’ll compare the two companies based on earnings strength, risk, valuation, dividends, institutional ownership, profitability, and analyst recommendations.
Valuation and benefits
This table compares the revenue, earnings per share (EPS), and valuation of Hawthorn Bancshares and The PNC Financial Services Group.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Hawthorn Bancshares||$80.84 million||2.15||$22.52 million||$3.38||7.59|
|PNC Financial Services Group||$19.70 billion||3.39||$5.67 billion||$11.82||1:65 p.m.|
PNC financial services group has higher revenue and profit than Hawthorn Bancshares. Hawthorn Bancshares 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.
This is a summary of recent ratings and target prices for Hawthorn Bancshares and The PNC Financial Services Group, as provided by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Hawthorn Bancshares||0||0||0||0||N / A|
|PNC Financial Services Group||1||9||6||0||2.31|
PNC Financial Services Group has a consensus price target of $214.40, indicating a potential upside of 32.85%. Given PNC Financial Services Group’s likely higher upside, analysts clearly believe that PNC Financial Services Group is more favorable than Hawthorn Bancshares.
Institutional and Insider Ownership
34.0% of Hawthorn Bancshares shares are held by institutional investors. By comparison, 83.5% of shares in The PNC Financial Services Group are held by institutional investors. 12.3% of Hawthorn Bancshares shares are held by insiders of the company. By comparison, 0.3% of shares in The PNC Financial Services Group are held by insiders of the company. Strong institutional ownership indicates that large fund managers, endowments, and hedge funds believe a stock is poised for long-term growth.
This table compares the net margins, return on equity and return on assets of Hawthorn Bancshares and The PNC Financial Services Group.
|Net margins||Return on equity||return on assets|
|PNC Financial Services Group||26.14%||12.43%||1.22%|
Volatility and risk
Hawthorn Bancshares has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. In comparison, PNC Financial Services Group has a beta of 1.24, indicating that its stock price of its stock is 24% more volatile than the S&P 500. .
Hawthorn Bancshares pays an annual dividend of $0.68 per share and has a dividend yield of 2.6%. PNC Financial Services Group pays an annual dividend of $6.00 per share and has a dividend yield of 3.7%. Hawthorn Bancshares pays 20.1% of its earnings as a dividend. The PNC Financial Services group distributes 50.8% 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. Hawthorn Bancshares has increased its dividend for 12 consecutive years and The PNC Financial Services Group has increased its dividend for 12 consecutive years.
Financial services group PNC beats Hawthorn Bancshares on 10 out of 15 factors compared between the two stocks.
Hawthorn Bancshares Company Profile (Get a rating)
Hawthorn Bancshares, Inc. operates as a bank holding company for Hawthorn Bank which provides commercial and personal banking services. It accepts checking, savings, money market, individual retirement and other term deposit accounts; and certificates of deposit. The Company also offers commercial and industrial, personal, installment, commercial and residential real estate and consumer loans, as well as small business equipment, operations and administration loans; and debit and credit cards. In addition, it provides fiduciary services which include estate planning, investment and asset management services; and cash management, safe deposit box, brokerage and internet banking. The company operates through 23 banking offices in communities in Missouri, Jefferson City, Columbia, Clinton, Warsaw, Springfield, St. Louis and the greater Kansas City metropolitan area. Hawthorn Bancshares, Inc. was founded in 1865 and is headquartered in Jefferson City, Missouri.
PNC Financial Services Group Company Profile (Get a rating)
The 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 planning, financial, tax, fiduciary 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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