Head-to-head review of PNC Financial Services Group (NYSE:PNC) and Arrow Financial (NASDAQ:AROW)



Financial Arrow (NASDAQ: AROWGet a rating) and the financial services group PNC (New York Stock Exchange: PNCGet a rating) are both finance companies, but which company is better? We’ll compare the two companies based on their dividend strength, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Profitability

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

Net margins Return on equity return on assets
Financial Arrow 33.05% 13.60% 1.23%
PNC Financial Services Group 26.14% 12.43% 1.22%

Analyst Notes

This is a summary of recent ratings and target prices for Arrow Financial and The PNC Financial Services Group, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Financial Arrow 0 0 0 0 N / A
PNC Financial Services Group 1 9 8 0 2.39

PNC Financial Services Group has a consensus price target of $219.44, indicating a potential upside of 32.11%. Given the higher possible upside of PNC Financial Services Group, analysts clearly believe that PNC Financial Services Group is more favorable than Arrow Financial.

Institutional and Insider Ownership

43.8% of Arrow Financial’s shares are held by institutional investors. By comparison, 82.6% of shares in The PNC Financial Services Group are held by institutional investors. 4.2% of Arrow Financial shares are held by insiders. By comparison, 0.3% of The PNC Financial Services Group shares are held by insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock will outperform the market over the long term.

Dividends

Arrow Financial pays an annual dividend of $1.08 per share and has a dividend yield of 3.5%. PNC Financial Services Group pays an annual dividend of $6.00 per share and has a dividend yield of 3.6%. Arrow Financial pays 35.5% of its profits 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. Arrow Financial has increased its dividend for 21 consecutive years and The PNC Financial Services Group has increased its dividend for 12 consecutive years.

Valuation and benefits

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

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Financial Arrow $147.92 million 3.39 $49.86 million $3.05 10.28
PNC Financial Services Group $19.70 billion 3.53 $5.67 billion $11.82 14.05

The PNC Financial Services group has higher revenues and profits than Arrow Financial. Arrow Financial 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.

Volatility and risk

Arrow Financial has a beta of 0.63, meaning its stock price is 37% less volatile than the S&P 500. In comparison, PNC Financial Services Group has a beta of 1.26, meaning its stock price of its stock is 26% more volatile than the S&P 500. .

Summary

Financial services group PNC beats Arrow Financial on 10 out of 16 factors compared between the two stocks.

Arrow Financial Company Profile (Get a rating)

Arrow Financial Corporation, a bank holding company, provides corporate and personal banking, financial products and services. The Company’s deposit products include demand deposits, interest-bearing checking accounts, savings deposits, term deposits and other term deposits. Its lending activities include commercial loans, such as term loans, term notes and lines of credit; and commercial real estate loans to finance real estate purchases, refinances, expansions and improvements of commercial properties, as well as commercial construction and land development loans to finance projects. The Company’s lending businesses also include consumer installment loans to finance personal expenses, personal lines of credit, overdraft protection and automobile loans; and residential real estate loans, home fixed loans and home equity lines of credit for consumers to finance home renovations, debt consolidation, education and other uses. In addition, it maintains an indirect lending program; and sells residential real estate loan originations in the secondary market. In addition, the company provides retirement planning, trust and estate administration services to individuals; and pension, profit sharing and corporate benefits administration services. In addition, it offers insurance agency services including group healthcare policies and life insurance products, and property and casualty insurance products; and investment advisory services to its proprietary mutual funds, as well as holds a real estate investment trust. The company operates in the upstate New York region in Warren, Washington, Saratoga, Essex, Clinton, Rensselaer, Albany and Schenectady counties and surrounding areas. It has 26 bank branches; and leases 12 bank branches, as well as two residential loan origination offices. Arrow Financial Corporation was founded in 1851 and is headquartered in Glens Falls, New York.

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 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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