Guaranty Bancshares (NASDAQ:GNTY) & The PNC Financial Services Group (NYSE:PNC) Critical Survey

Guaranty Bancshares (NASDAQ:GNTY) and The PNC Financial Services Group (NYSE:PNC) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for Guaranty Bancshares and The PNC Financial Services Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Guaranty Bancshares	0	2	1	0	2.33
The PNC Financial Services Group	2	6	9	0	2.41

Guaranty Bancshares currently has a consensus price target of $33.67, suggesting a potential downside of 7.31%. The PNC Financial Services Group has a consensus price target of $176.90, suggesting a potential downside of 5.48%. Given The PNC Financial Services Group’s stronger consensus rating and higher probable upside, analysts clearly believe The PNC Financial Services Group is more favorable than Guaranty Bancshares.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Guaranty Bancshares	$111.21 million	3.76	$30.04 million	$2.44	14.89
The PNC Financial Services Group	$20.42 billion	3.65	$5.58 billion	$11.91	15.71

The PNC Financial Services Group has higher revenue and earnings than Guaranty Bancshares. Guaranty Bancshares 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Guaranty Bancshares	14.48%	8.66%	0.83%
The PNC Financial Services Group	15.53%	11.33%	1.03%

Institutional & Insider Ownership

39.4% of Guaranty Bancshares shares are held by institutional investors. Comparatively, 83.5% of The PNC Financial Services Group shares are held by institutional investors. 26.4% of Guaranty Bancshares shares are held by insiders. Comparatively, 0.4% of The PNC Financial Services Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Guaranty Bancshares has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, The PNC Financial Services Group has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.

Dividends

Guaranty Bancshares pays an annual dividend of $0.96 per share and has a dividend yield of 2.6%. The PNC Financial Services Group pays an annual dividend of $6.40 per share and has a dividend yield of 3.4%. Guaranty Bancshares pays out 39.3% of its earnings in the form of a dividend. The PNC Financial Services Group pays out 53.7% 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 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.

Summary

The PNC Financial Services Group beats Guaranty Bancshares on 14 of the 17 factors compared between the two stocks.

About Guaranty Bancshares

Guaranty Bancshares, Inc. operates as the bank holding company for Guaranty Bank & Trust, N.A. that provides a range of commercial and consumer banking products and services for small- and medium-sized businesses, professionals, and individuals. The company offers checking and savings, money market, and business accounts, as well as certificates of deposit; and commercial and industrial, construction and development, 1-4 family residential, commercial real estate, farmland, agricultural, multi-family residential, and consumer loans. It also provides trustee, custodial and escrow, investment management, retirement plan, ATM, night depository, direct deposit, and cashier's check services, as well as online and mobile banking services; debit cards; letters of credit; and treasury management services, including wire transfer, positive pay, remote deposit capture, and automated clearinghouse services. Guaranty Bancshares, Inc. was founded in 1913 and is headquartered in Addison, Texas.

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.