The PNC Financial Services Group, Inc (PNC) vs U.S. Bancorp (USB)

The PNC Financial Services Group, Inc and U.S. Bancorp are both Banks Regional companies. The PNC Financial Services Group, Inc and U.S. Bancorp are of similar size ($93.4B and $89.1B). U.S. Bancorp trades at the lower P/E: 11.8× against 12.4×. The PNC Financial Services Group, Inc grew revenue faster over the last twelve months: 5.20% against 3.33%. The PNC Financial Services Group, Inc has the higher net margin (20.4% vs 17.8%) and the lower return on invested capital (4.85% vs 10.6%). Both pay a dividend; U.S. Bancorp yields more (4.89% vs 4.25%). Across the 20 metrics below, U.S. Bancorp leads on 12 and The PNC Financial Services Group, Inc on 8.

Valuation

Metric PNC USB Banks Regional median
P/E 12.41 11.84 12.15
P/S 2.55 2.11 2.37
P/B 1.42 1.51 1.21
Price to free cash flow 12.14 7.36 10.80
EV/EBITDA n/m n/m —
EV/Sales 4.15 1.93 2.27
Earnings yield 8.06% 8.44% 8.11%
Free cash flow yield 8.23% 13.58% 8.98%

Profitability

Metric PNC USB Banks Regional median
Gross margin 70.25% 67.64% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 20.38% 17.83% 18.66%
Free cash flow margin 21.02% 28.64% 21.18%
Return on equity 11.93% 13.42% 10.64%
Return on assets 1.24% 1.10% 1.13%
Return on invested capital 4.85% 10.62% 8.33%

Growth

Metric PNC USB Banks Regional median
Revenue growth (TTM) 5.20% 3.33% 6.61%
EPS growth (last fiscal year) 20.74% 21.90% —
Revenue growth, 5-year CAGR 13.23% 11.17% 12.30%
Net income growth, 5-year CAGR 19.35% 9.26% 9.71%

Health

Metric PNC USB Banks Regional median
Debt to equity 1.34 0.86 0.22
Current ratio 0.85 0.83 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric PNC USB Banks Regional median
Dividend yield 4.25% 4.89% 3.75%
Payout ratio 0.41 0.53 0.27

Size

Metric PNC USB Banks Regional median
Market cap 89.10b 93.40b 921.07m

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