Financial services

Direct comparison between Hope Bancorp (NASDAQ:HOPE) and The PNC Financial Services Group (NYSE:PNC)


Hope Bancorp (NASDAQ:HOPE – Get Rating) and The PNC Financial Services Group (NYSE:PNC – Get Rating) are both finance companies, but which stock is superior? We’ll compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings, and analyst recommendations.

Benefits and evaluation

This table compares the gross revenue, earnings per share and valuation of Hope Bancorp and The PNC Financial Services Group.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Hope Bancorp $610.13 million 3.06 $204.57 million $1.66 9.37
PNC Financial Services Group $19.70 billion 3.72 $5.67 billion $12.69 13.79

PNC Financial Services Group has higher revenues and profits than Hope Bancorp. Hope Bancorp trades at a lower price-to-earnings ratio than PNC Financial Services Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Hope Bancorp and The PNC Financial Services Group, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Hope Bancorp 0 0 1 0 3.00
PNC Financial Services Group 1 ten ten 0 2.43

Hope Bancorp currently has a consensus price target of $18.00, suggesting a potential upside of 15.68%. PNC Financial Services Group has a consensus price target of $219.76, suggesting a potential upside of 25.58%. Given PNC Financial Services Group’s likely higher upside, analysts clearly believe that PNC Financial Services Group is more favorable than Hope Bancorp.

Profitability

This table compares the net margins, return on equity and return on assets of Hope Bancorp and The PNC Financial Services Group.

Net margins Return on equity return on assets
Hope Bancorp 33.53% 9.85% 1.16%
PNC Financial Services Group 28.81% 12.86% 1.33%

Institutional and insider ownership

83.9% of Hope Bancorp shares are held by institutional investors. By comparison, 82.6% of shares in The PNC Financial Services Group are held by institutional investors. 5.3% of the shares of Hope Bancorp are held by insiders of the company. By comparison, 0.3% of shares in The PNC Financial Services Group are held by insiders of the company. Strong institutional ownership indicates that large money managers, endowments, and hedge funds believe a stock is poised for long-term growth.

Volatility and risk

Hope Bancorp has a beta of 1.32, suggesting its stock price is 32% more volatile than the S&P 500. In comparison, PNC Financial Services Group has a beta of 1.26, suggesting its stock price of its stock is 26% more volatile than the S&P 500. .

Dividends

Hope Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.6%. PNC Financial Services Group pays an annual dividend of $6.00 per share and has a dividend yield of 3.4%. Hope Bancorp pays 33.7% of its profits as a dividend. The PNC Financial Services group distributes 47.3% of its profits in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. The PNC Financial Services group has increased its dividend for 12 consecutive years. Hope Bancorp is clearly the better dividend-paying stock, given its higher yield and lower payout ratio.

Summary

PNC Financial Services Group beats Hope Bancorp on 10 out of 17 factors compared between the two stocks.

About Hope Bancorp (Get an assessment)

Hope Bancorp, Inc. operates as a bank holding company for Bank of Hope which provides banking services to small and medium businesses and individuals in the United States. The company accepts personal and business checks, money market, savings, term deposits and individual retirement accounts. Its lending products include commercial loans to businesses for various purposes, such as working capital, purchase of inventory, refinancing of debt, business acquisitions and other business-related financing needs; real estate loans; small business administration loans; and consumer loans, such as single-family mortgages, home equity, auto loans, credit cards, and personal loans. The Company also offers trade finance services, including issuing and negotiating letters of credit, as well as managing documentary collections; warehouse lines of credit to mortgage originators; and commercial equipment lease financing. Additionally, it provides cash management services, such as remote deposit capture, lock box, and ACH origination services; investment and wealth management services; mobile banking; debit card services; exchange services, safe deposit boxes and other usual banking services; online banking services; and ATM 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 origination 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 PNC Financial Services Group (Get an assessment)

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, investment and cash management services; checking, savings and money market accounts; certificates of deposit; and lending products, which include residential mortgages, home equity loans and lines of credit, auto loans, education loans and personal and small business loans, as well as consumer credit cards and to small businesses 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 trading, derivatives, fixed income securities, securities underwriting, loan syndications, mergers and acquisitions and equity capital markets advisory services; and commercial lending services and technology solutions for the commercial real estate finance industry. The Company’s Asset Management Group segment offers investment and retirement planning solutions, personalized investment management, credit and cash management solutions, private banking, and management and administration solutions. trustees; and multi-generational family planning products, such as estate, financial, tax, fiduciary planning and personalized performance reporting services. This segment also provides outsourced investment manager, custody, private real estate, cash and fixed income, and pension trust 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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