Hope Bancorp (NASDAQ:HOPE – Get Rating) and The PNC Financial Services Group (NYSE:PNC – Get Rating) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.
Earnings & Valuation
This table compares Hope Bancorp and The PNC Financial Services Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||net income||Earnings Per Share||Price/Earnings Ratio|
|Hope Bancorp||$610.13 million||3.06||$204.57 million||$1.66||9.37|
|The PNC Financial Services Group||$19.70 trillion||3.72||$5.67 trillion||$12.69||13.79|
The PNC Financial Services Group has higher revenue and earnings than Hope Bancorp. Hope Bancorp is trading at a lower price-to-earnings ratio than The PNC Financial Services Group, indicating that it is currently the most affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Hope Bancorp and The PNC Financial Services Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||RatingScore|
|The PNC Financial Services Group||1||10||10||0||2.43|
Hope Bancorp currently has a consensus price target of $18.00, suggesting a potential upside of 15.68%. The PNC Financial Services Group has a consensus price target of $219.76, suggesting a potential upside of 25.58%. Given The PNC Financial Services Group’s higher probable upside, analysts clearly believe The PNC Financial Services Group is more favorable than Hope Bancorp.
This table compares Hope 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|
|The PNC Financial Services Group||28.81%||12.86%||1.33%|
Institutional & Insider Ownership
83.9% of Hope Bancorp shares are owned by institutional investors. Comparatively, 82.6% of The PNC Financial Services Group shares are owned by institutional investors. 5.3% of Hope Bancorp shares are owned by company insiders. Comparatively, 0.3% of The PNC Financial Services Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
Hope Bancorp has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, The PNC Financial Services Group has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500 .
Hope Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.6%. The PNC Financial Services Group pays an annual dividend of $6.00 per share and has a dividend yield of 3.4%. Hope Bancorp pays out 33.7% of its earnings in the form of a dividend. The PNC Financial Services Group pays out 47.3% 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 12 consecutive years. Hope Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.
The PNC Financial Services Group beats Hope Bancorp on 10 of the 17 factors compared between the two stocks.
About Hope Bancorp (Get Rating)
Hope Bancorp, Inc. operates as the bank holding company for Bank of Hope that provides banking services for small and medium-sized businesses, and individuals in the United States. The company accepts personal and business checking, money market, savings, time deposit, and individual retirement accounts. Its loan products include commercial loans to businesses for various purposes, such as working capital, purchasing inventory, debt refinancing, business acquisitions, and other business related financing needs; real estate loans; small business administration loans; and consumer loans, such as single-family mortgage, home equity, auto, credit card, and personal loans. The company also offers trade finance services, including the issuance and negotiation of letters of credit, as well as handles documentary collections; warehouse lines of credit to mortgage loan originators; and commercial equipment lease financing. In addition, it provides cash management services, such as remote deposit capture, lock box, and ACH origination services; investment and wealth management services; mobile banking services; debit card services; foreign exchange services, safe deposit boxes, and other customary bank services; internet banking services; and automated teller machine services. As of December 31, 2021, the company operated 47 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, and Alabama; SBA loan production offices in Atlanta, Houston, Dallas, Denver, Portland, Seattle, Fremont, and Southern California; and a representative office in Seoul, Korea. Hope Bancorp, Inc. was incorporated in 2000 and is headquartered in Los Angeles, California.
About The PNC Financial Services Group (Get 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, and investment and cash management services; checking, savings, and money market accounts; certificates of deposits; and lending products, which includes residential mortgages, home equity loans and lines of credit, auto loans, education loans, and personal and small business loans, and credit cards to consumer and small business customers 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, derivatives, fixed income, securities underwriting, loan syndications, and mergers and acquisitions and equity capital markets advisory related services; and commercial loan servicing and technology solutions for the commercial real estate finance industry. The company’s Asset Management Group segment offers investment and retirement planning, customized investment management, credit and cash management solutions, private banking, and trust management and administration solutions; and multi-generational family planning products, such as estate, financial, tax planning, fiduciary, and customized performance reporting services. This segment also provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, and fiduciary retirement 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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