Comparing The PNC Financial Services Group (NYSE:PNC) & NBT Bancorp (NASDAQ:NBTB)

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

Earnings & Valuation

This table compares NBT Bancorp and The PNC Financial Services Group’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NBT Bancorp	$664.97 million	2.67	$118.78 million	$2.59	14.55
The PNC Financial Services Group	$31.88 billion	1.90	$5.58 billion	$11.91	12.76

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

Volatility & Risk

NBT Bancorp has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, The PNC Financial Services Group has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.

Dividends

NBT Bancorp pays an annual dividend of $1.28 per share and has a dividend yield of 3.4%. The PNC Financial Services Group pays an annual dividend of $6.20 per share and has a dividend yield of 4.1%. NBT Bancorp pays out 49.4% of its earnings in the form of a dividend. The PNC Financial Services Group pays out 52.1% 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. NBT Bancorp has increased its dividend for 11 consecutive years and The PNC Financial Services Group has increased its dividend for 13 consecutive years. The PNC Financial Services Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

58.5% of NBT Bancorp shares are held by institutional investors. Comparatively, 83.5% of The PNC Financial Services Group shares are held by institutional investors. 3.3% of NBT Bancorp shares are held by company insiders. Comparatively, 0.4% of The PNC Financial Services Group shares are held by company 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.

Profitability

This table compares NBT 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
NBT Bancorp	16.71%	10.20%	1.06%
The PNC Financial Services Group	16.05%	11.64%	1.04%

Analyst Ratings

This is a summary of current recommendations and price targets for NBT Bancorp and The PNC Financial Services Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NBT Bancorp	0	1	4	0	2.80
The PNC Financial Services Group	2	7	5	0	2.21

NBT Bancorp currently has a consensus target price of $41.20, suggesting a potential upside of 9.34%. The PNC Financial Services Group has a consensus target price of $158.43, suggesting a potential upside of 4.28%. Given NBT Bancorp’s stronger consensus rating and higher probable upside, research analysts clearly believe NBT Bancorp is more favorable than The PNC Financial Services Group.

Summary

The PNC Financial Services Group beats NBT Bancorp on 9 of the 17 factors compared between the two stocks.

About NBT Bancorp

NBT Bancorp Inc., a financial holding company, provides commercial banking, retail banking, and wealth management services. Its deposit products include demand deposit, savings, negotiable order of withdrawal, money market deposit, and certificate of deposit accounts. The company's loan portfolio comprises indirect and direct consumer, home equity, mortgages, business banking loans, and commercial loans; commercial and industrial, commercial real estate, agricultural, and commercial construction loans; and residential real estate loans. It also provides trust and investment services; financial planning and life insurance services; and retirement plan administration and recordkeeping services. In addition, the company offers insurance products comprising personal property and casualty, business liability, and commercial insurance, as well as other products and services through 24-hour online, mobile, and telephone channels that enable customers to check balances, make deposits, transfer funds, pay bills, access statements, apply for loans, and access various other products and services. Further, it operates as a property management and passive investment company, as well as investment advisor that provides investment management and financial consulting services. The company operates in upstate New York, northeastern Pennsylvania, southern New Hampshire, western Massachusetts, Vermont, southern Maine, and central and northwestern Connecticut. NBT Bancorp Inc. was founded in 1856 and is headquartered in Norwich, New York.

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.