Financial Analysis: Dime Community Bancshares (NASDAQ:DCOM) vs. The PNC Financial Services Group (NYSE:PNC)
Dime Community Bancshares (NASDAQ: DCOM – 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 will compare the two companies based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
72.3% of Dime Community Bancshares shares are held by institutional investors. By comparison, 83.5% of shares in The PNC Financial Services Group are held by institutional investors. 15.3% of Dime Community Bancshares 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.
This is a summary of recent recommendations and price targets for Dime Community Bancshares and The PNC Financial Services Group, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Dime Community Bancshares||0||0||1||0||3.00|
|PNC Financial Services Group||1||9||8||0||2.39|
Dime Community Bancshares currently has a consensus target price of $38.50, suggesting a potential upside of 19.34%. PNC Financial Services Group has a consensus target price of $219.44, suggesting a potential upside of 31.70%. Given the higher possible upside of PNC Financial Services Group, analysts clearly believe that PNC Financial Services Group is more favorable than Dime Community Bancshares.
Dime Community Bancshares pays an annual dividend of $0.96 per share and has a dividend yield of 3.0%. PNC Financial Services Group pays an annual dividend of $6.00 per share and has a dividend yield of 3.6%. Dime Community Bancshares pays 25.7% 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. Dime Community Bancshares has increased its dividend for 1 consecutive year and The PNC Financial Services Group has increased its dividend for 12 consecutive years. PNC Financial Services Group is clearly the best dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and benefits
This table compares the gross revenue, earnings per share (EPS), and valuation of Dime Community Bancshares and The PNC Financial Services Group.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Dime Community Bancshares||$426.69 million||2.98||$104.00 million||$3.73||8.65|
|PNC Financial Services Group||$19.70 billion||3.54||$5.67 billion||$11.82||14.10|
Financial services group PNC has higher revenue and profit than Dime Community Bancshares. Dime Community 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.
Risk and Volatility
Dime Community Bancshares has a beta of 1.06, which means its stock price is 6% more volatile than the S&P 500. In comparison, PNC Financial Services Group has a beta of 1.24, which means the its share price is 24% more volatile than the S&P. 500.
This table compares the net margins, return on equity and return on assets of Dime Community Bancshares and The PNC Financial Services Group.
|Net margins||Return on equity||return on assets|
|Dime Community Bancshares||35.58%||14.40%||1.25%|
|PNC Financial Services Group||26.14%||12.43%||1.22%|
Financial services group PNC beats Dime Community Bancshares on 11 out of 17 factors compared between the two stocks.
Dime Community Bancshares Company Profile (Get a rating)
Dime Community Bancshares, Inc. operates as a holding company for Dime Community Bank which provides various commercial banking and financial services. It accepts term, savings and demand deposits from businesses, consumers and local municipalities. The company also offers commercial real estate loans; multi-family mortgages; residential mortgages; secured and unsecured commercial and consumer loans; home equity loans; and construction and land loans. In addition, it invests in Federal Home Loan Bank, Federal National Mortgage Association, Government National Mortgage Association and Federal Home Loan Mortgage Corporation, mortgage-backed securities, secured mortgage bonds and other mortgage-backed securities. assets ; US Treasury securities; New York State and local municipal bonds; US government-sponsored corporate securities; and corporate bonds. In addition, the company offers deposit account register certificate services and insured cash sweep programs; merchant credit and debit card processing, ATMs, cash management services, safe deposit box processing, online banking, remote deposit capture, safe deposit boxes and individual retirement accounts; investment products and services through a third party broker; and title insurance brokerage services. As of December 31, 2021, it operated 60 branches on Long Island and in the New York boroughs of Brooklyn, Queens, Manhattan and the Bronx. Dime Community Bancshares, Inc. was founded in 1910 and is headquartered in Hauppauge, New York.
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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