The PNC Financial Services Group, Inc (PNC) vs Truist Financial Corporation (TFC)

The PNC Financial Services Group, Inc and Truist Financial Corporation are both Banks Regional companies. The PNC Financial Services Group, Inc is the larger, with a market value of $89.1B against $58.0B — 1.5× the size. Truist Financial Corporation trades at the lower P/E: 10.8× against 12.4×. The PNC Financial Services Group, Inc grew revenue faster over the last twelve months: 5.20% against 0.35%. The PNC Financial Services Group, Inc has the higher net margin (20.4% vs 18.1%) and the lower return on invested capital (4.85% vs 7.33%). Both pay a dividend; Truist Financial Corporation yields more (5.95% vs 4.25%). Across the 20 metrics below, The PNC Financial Services Group, Inc leads on 11 and Truist Financial Corporation on 9.

Valuation

Metric PNC TFC Banks Regional median
P/E 12.41 10.81 12.15
P/S 2.55 1.91 2.37
P/B 1.42 0.99 1.21
Price to free cash flow 12.14 13.57 10.80
EV/EBITDA n/m n/m —
EV/Sales 4.15 1.72 2.27
Earnings yield 8.06% 9.25% 8.11%
Free cash flow yield 8.23% 7.37% 8.98%

Profitability

Metric PNC TFC Banks Regional median
Gross margin 70.25% 68.31% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 20.38% 18.13% 18.66%
Free cash flow margin 21.02% 18.99% 21.18%
Return on equity 11.93% 9.41% 10.64%
Return on assets 1.24% 1.01% 1.13%
Return on invested capital 4.85% 7.33% 8.33%

Growth

Metric PNC TFC Banks Regional median
Revenue growth (TTM) 5.20% 0.35% 6.61%
EPS growth (last fiscal year) 20.74% 13.69% —
Revenue growth, 5-year CAGR 13.23% 4.50% 12.30%
Net income growth, 5-year CAGR 19.35% 3.52% 9.71%

Health

Metric PNC TFC Banks Regional median
Debt to equity 1.34 0.67 0.22
Current ratio 0.85 0.86 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric PNC TFC Banks Regional median
Dividend yield 4.25% 5.95% 3.75%
Payout ratio 0.41 0.48 0.27

Size

Metric PNC TFC Banks Regional median
Market cap 89.10b 58.04b 921.07m

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