The PNC Financial Services Group (NYSE:PNC) vs. Piper Sandler Companies (NYSE:PIPR) Head to Head Analysis

The PNC Financial Services Group (NYSE:PNC) and Piper Sandler Companies (NYSE:PIPR) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Dividends

The PNC Financial Services Group pays an annual dividend of $6.40 per share and has a dividend yield of 3.3%. Piper Sandler Companies pays an annual dividend of $2.60 per share and has a dividend yield of 0.9%. The PNC Financial Services Group pays out 45.2% of its earnings in the form of a dividend. Piper Sandler Companies pays out 22.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. The PNC Financial Services Group has increased its dividend for 14 consecutive years and Piper Sandler Companies has increased its dividend for 1 consecutive years. The PNC Financial Services Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares The PNC Financial Services Group and Piper Sandler Companies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The PNC Financial Services Group	$34.44 billion	2.24	$5.89 billion	$14.16	13.78
Piper Sandler Companies	$1.53 billion	3.42	$181.11 million	$11.44	25.65

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

Profitability

This table compares The PNC Financial Services Group and Piper Sandler Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The PNC Financial Services Group	17.68%	10.95%	1.07%
Piper Sandler Companies	13.20%	18.32%	12.54%

Analyst Ratings

This is a summary of current recommendations for The PNC Financial Services Group and Piper Sandler Companies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The PNC Financial Services Group	2	6	10	1	2.53
Piper Sandler Companies	0	2	0	0	2.00

The PNC Financial Services Group currently has a consensus target price of $206.35, suggesting a potential upside of 5.77%. Piper Sandler Companies has a consensus target price of $286.00, suggesting a potential downside of 2.54%. Given The PNC Financial Services Group’s stronger consensus rating and higher possible upside, research analysts plainly believe The PNC Financial Services Group is more favorable than Piper Sandler Companies.

Volatility and Risk

The PNC Financial Services Group has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Piper Sandler Companies has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500.

Institutional & Insider Ownership

83.5% of The PNC Financial Services Group shares are owned by institutional investors. Comparatively, 72.8% of Piper Sandler Companies shares are owned by institutional investors. 0.4% of The PNC Financial Services Group shares are owned by insiders. Comparatively, 2.7% of Piper Sandler Companies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

The PNC Financial Services Group beats Piper Sandler Companies on 11 of the 18 factors compared between the two stocks.

About The PNC Financial Services Group

The 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 equity 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 and cash management services. This segment serves consumer and small business customers through a network of branches, digital channels, ATMs, and through phone-based customer contact centers. 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; securities underwriting, loan syndications, customer-related trading, and mergers and acquisitions and equity capital markets advisory related services; and commercial loan servicing and technology solutions. It serves mid-sized and large corporations, and government and not-for-profit entities. The company's Asset Management Group segment offers investment and retirement planning, customized investment management, credit and cash management solutions, and trust management and administration 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, private real estate, cash and fixed income client solutions, and retirement plan fiduciary investment services for institutional clients. The company was founded in 1852 and is headquartered in Pittsburgh, Pennsylvania.

About Piper Sandler Companies

Piper Sandler Companies operates as an investment bank and institutional securities firm that serves corporations, private equity groups, public entities, non-profit entities, and institutional investors in the United States and internationally. It offers investment banking services and institutional sales, trading, and research services for various equity and fixed income products; advisory services, such as mergers and acquisitions, equity and debt private placements, and debt and restructuring advisory; raises capital through equity and debt financings; underwrites municipal issuances; and municipal financial advisory and loan placement services, as well as various over-the-counter derivative products. It also provides public finance investment banking services that focus on state and local governments, and cultural and social service non-profit entities, as well as the education, healthcare, hospitality, senior living, housing, and transportation sectors. In addition, the company offers equity and fixed income advisory and trade execution services for institutional investors, corporations, and government and non-profit entities. Further, it is involved in the alternative asset management funds merchant banking and healthcare to invest firm capital and to manage capital from outside investors. The company was formerly known as Piper Jaffray Companies and changed its name to Piper Sandler Companies in January 2020. Piper Sandler Companies was founded in 1895 and is headquartered in Minneapolis, Minnesota.