Raymond James Financial (NYSE:RJF) & The PNC Financial Services Group (NYSE:PNC) Head-To-Head Analysis

The PNC Financial Services Group (NYSE:PNC) and Raymond James Financial (NYSE:RJF) are both large-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.

Institutional & Insider Ownership

83.5% of The PNC Financial Services Group shares are held by institutional investors. Comparatively, 83.8% of Raymond James Financial shares are held by institutional investors. 0.4% of The PNC Financial Services Group shares are held by company insiders. Comparatively, 0.5% of Raymond James Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares The PNC Financial Services Group and Raymond James Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The PNC Financial Services Group	18.33%	11.07%	1.11%
Raymond James Financial	13.56%	18.50%	2.65%

Dividends

The PNC Financial Services Group pays an annual dividend of $6.80 per share and has a dividend yield of 3.5%. Raymond James Financial pays an annual dividend of $2.00 per share and has a dividend yield of 1.2%. The PNC Financial Services Group pays out 46.5% of its earnings in the form of a dividend. Raymond James Financial pays out 19.6% 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 Raymond James Financial has increased its dividend for 3 consecutive years. The PNC Financial Services Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The PNC Financial Services Group	1	7	11	1	2.60
Raymond James Financial	0	8	3	1	2.42

The PNC Financial Services Group presently has a consensus target price of $214.17, suggesting a potential upside of 11.29%. Raymond James Financial has a consensus target price of $163.80, suggesting a potential downside of 3.35%. Given The PNC Financial Services Group’s stronger consensus rating and higher probable upside, research analysts plainly believe The PNC Financial Services Group is more favorable than Raymond James Financial.

Risk & Volatility

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, Raymond James Financial has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.

Earnings and Valuation

This table compares The PNC Financial Services Group and Raymond James Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The PNC Financial Services Group	$34.44 billion	2.21	$5.89 billion	$14.62	13.16
Raymond James Financial	$14.92 billion	2.29	$2.07 billion	$10.20	16.61

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

Summary

The PNC Financial Services Group beats Raymond James Financial on 10 of the 17 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 Raymond James Financial

Raymond James Financial, Inc., a financial holding company, through its subsidiaries, engages in the underwriting, distribution, trading, and brokerage of equity and debt securities, and the sale of mutual funds and other investment products in the United States, Canada, Europe, and internationally. The company operates through Private Client Group, Capital Markets, Asset Management, RJ Bank, and Other segments. The Private Client Group segment provides securities brokerage services, including the sale of equities, mutual funds, fixed income products, and insurance products to their individual clients; and borrowing and lending of securities to and from other broker-dealers, financial institutions, and other counterparties. The Capital Markets segment offers securities brokerage, trading, and research services to institutions with a focus on sale of the United States and Canadian equities and fixed income products; and manages and participates in underwritings, merger and acquisition services, and public finance activities. The Asset Management segment engages in the operations of Eagle, the Eagle Family of Funds, Cougar, the asset management operations of Raymond James & Associates, trust services of Raymond James Trust, and other fee-based asset management programs. The RJ Bank segment provides corporate loans, SBL, tax-exempt loans, and residential loans. The Other segment engages in private equity activities, including various direct and third party private equity investments; and private equity funds. Raymond James Financial, Inc. was founded in 1962 and is based in St. Petersburg, Florida.