Analyzing Fulton Financial (NASDAQ:FULT) and The PNC Financial Services Group (NYSE:PNC)

Fulton Financial (NASDAQ:FULT) and The PNC Financial Services Group (NYSE:PNC) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Dividends

Fulton Financial pays an annual dividend of $0.68 per share and has a dividend yield of 3.2%. The PNC Financial Services Group pays an annual dividend of $6.40 per share and has a dividend yield of 3.1%. Fulton Financial pays out 43.0% of its earnings in the form of a dividend. The PNC Financial Services Group pays out 54.1% 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 increased its dividend for 14 consecutive years. Fulton Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Fulton Financial and The PNC Financial Services Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fulton Financial	$1.50 billion	2.56	$284.28 million	$1.58	13.34
The PNC Financial Services Group	$31.88 billion	2.60	$5.58 billion	$11.83	17.67

The PNC Financial Services Group has higher revenue and earnings than Fulton Financial. Fulton Financial 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 Fulton Financial and The PNC Financial Services Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fulton Financial	16.37%	11.33%	1.05%
The PNC Financial Services Group	14.97%	10.88%	1.02%

Risk and Volatility

Fulton Financial has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, The PNC Financial Services Group has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Institutional & Insider Ownership

72.0% of Fulton Financial shares are held by institutional investors. Comparatively, 83.5% of The PNC Financial Services Group shares are held by institutional investors. 1.1% of Fulton Financial shares are held by company insiders. Comparatively, 0.4% of The PNC Financial Services Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Fulton Financial and The PNC Financial Services Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fulton Financial	0	4	1	0	2.20
The PNC Financial Services Group	2	6	9	0	2.41

Fulton Financial presently has a consensus price target of $18.83, suggesting a potential downside of 10.66%. The PNC Financial Services Group has a consensus price target of $193.96, suggesting a potential downside of 7.20%. Given The PNC Financial Services Group’s stronger consensus rating and higher possible upside, analysts plainly believe The PNC Financial Services Group is more favorable than Fulton Financial.

Summary

The PNC Financial Services Group beats Fulton Financial on 11 of the 17 factors compared between the two stocks.

About Fulton Financial

Fulton Financial Corporation operates as a financial holding company that provides consumer and commercial banking products and services in Pennsylvania, Delaware, Maryland, New Jersey, and Virginia. It accepts various checking accounts and savings deposit products, certificates of deposit, and individual retirement accounts. The company offers consumer loans products, including home equity loans and lines of credit, automobile loans, personal lines of credit, and checking account overdraft protection; construction and jumbo residential mortgage loans; and commercial lending products comprising commercial real estate, commercial and industrial, and construction loans, as well as equipment lease financing loans. In addition, it offers letters of credit, cash management services, and traditional deposit products; and wealth management services, including investment management, trust, brokerage, insurance, and investment advisory services. Further, the company owns trust preferred securities; and sells various life insurance products. It provides its products and services through financial center offices, as well as through a network of automated teller machines, telephone banking, mobile banking, and online banking. Fulton Financial Corporation was founded in 1882 and is headquartered in Lancaster, Pennsylvania.

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.