The PNC Financial Services Group (NYSE:PNC) & Old National Bancorp (NASDAQ:ONB) Head-To-Head Comparison

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

Dividends

Old National Bancorp pays an annual dividend of $0.58 per share and has a dividend yield of 2.3%. The PNC Financial Services Group pays an annual dividend of $8.00 per share and has a dividend yield of 3.4%. Old National Bancorp pays out 23.7% of its earnings in the form of a dividend. The PNC Financial Services Group pays out 42.6% 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 raised its dividend for 14 consecutive years. The PNC Financial Services Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Old National Bancorp	23.36%	12.02%	1.35%
The PNC Financial Services Group	21.83%	12.82%	1.33%

Insider & Institutional Ownership

83.7% of Old National Bancorp shares are owned by institutional investors. Comparatively, 83.5% of The PNC Financial Services Group shares are owned by institutional investors. 0.7% of Old National Bancorp shares are owned by insiders. Comparatively, 0.4% of The PNC Financial Services Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Old National Bancorp and The PNC Financial Services Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Old National Bancorp	$3.74 billion	2.54	$669.26 million	$2.45	10.23
The PNC Financial Services Group	$25.20 billion	3.65	$6.94 billion	$18.79	12.34

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

Volatility & Risk

Old National Bancorp has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, The PNC Financial Services Group has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Old National Bancorp and The PNC Financial Services Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Old National Bancorp	0	2	12	0	2.86
The PNC Financial Services Group	0	8	17	0	2.68

Old National Bancorp presently has a consensus target price of $29.57, suggesting a potential upside of 17.93%. The PNC Financial Services Group has a consensus target price of $266.04, suggesting a potential upside of 14.71%. Given Old National Bancorp’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Old National Bancorp is more favorable than The PNC Financial Services Group.

Summary

The PNC Financial Services Group beats Old National Bancorp on 10 of the 17 factors compared between the two stocks.

About Old National Bancorp

Old National Bancorp is a regional bank holding company headquartered in Evansville, Indiana. Founded in 1834, it operates primarily through Old National Bank, serving individuals, businesses and organizations across the Midwest. The company offers consumer and commercial banking services, including checking and savings accounts, loans, mortgages, treasury management and digital banking. It also provides wealth management and trust services, as well as solutions for businesses and institutional clients.

About The PNC Financial Services Group

The PNC Financial Services Group, Inc. is a diversified financial services company headquartered in Pittsburgh, Pennsylvania. It serves consumers, small businesses, corporations, government entities and institutional clients through a range of banking and financial services. PNC’s businesses include retail banking, corporate and institutional banking, and asset management. Its offerings include deposit accounts, lending, cash management, treasury services, investment and wealth management, and other financial products and services.