Critical Comparison: Citigroup (NYSE:C) and Park National (NYSE:PRK)

Park National (NYSE:PRK) and Citigroup (NYSE:C) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Earnings and Valuation

This table compares Park National and Citigroup”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Park National	$564.30 million	5.27	$126.73 million	$8.45	21.78
Citigroup	$80.41 billion	1.67	$9.23 billion	$3.45	20.62

Citigroup has higher revenue and earnings than Park National. Citigroup is trading at a lower price-to-earnings ratio than Park National, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Park National has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Citigroup has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.

Institutional & Insider Ownership

62.7% of Park National shares are held by institutional investors. Comparatively, 71.7% of Citigroup shares are held by institutional investors. 2.7% of Park National shares are held by company insiders. Comparatively, 0.1% of Citigroup shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Park National and Citigroup’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Park National	22.09%	12.05%	1.44%
Citigroup	4.70%	6.19%	0.49%

Analyst Recommendations

This is a summary of current ratings and target prices for Park National and Citigroup, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Park National	0	2	0	0	2.00
Citigroup	1	4	11	0	2.63

Park National currently has a consensus price target of $130.00, suggesting a potential downside of 29.35%. Citigroup has a consensus price target of $76.47, suggesting a potential upside of 7.47%. Given Citigroup’s stronger consensus rating and higher possible upside, analysts plainly believe Citigroup is more favorable than Park National.

Dividends

Park National pays an annual dividend of $4.24 per share and has a dividend yield of 2.3%. Citigroup pays an annual dividend of $2.24 per share and has a dividend yield of 3.1%. Park National pays out 50.2% of its earnings in the form of a dividend. Citigroup pays out 64.9% 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.

About Park National

Park National Corporation operates as the bank holding company for Park National Bank that provides commercial banking and trust services in small and medium population areas. The company offers deposits for demand, savings, and time accounts; trust and wealth management services; cash management services; safe deposit operations; electronic funds transfers; Internet and mobile banking solutions with bill pay service; credit cards; and various additional banking-related services. It also provides commercial loans, including financing for industrial and commercial properties, financing for equipment, inventory and accounts receivable, acquisition financing, and commercial leasing, as well as for consumer finance companies; commercial real estate loans comprising mortgage loans to developers and owners of commercial real estate; originates financing leases primarily for the purchase of commercial vehicles, operating/manufacturing equipment, and municipal vehicles/equipment; consumer loans, such as automobile loans; consumer finance services; home equity lines of credit; and residential real estate and construction loans, as well as installment loans and commercial loans. In addition, the company offers aircraft financing services; and ParkDirect, a personal banking application. Park National Corporation was founded in 1908 and is headquartered in Newark, Ohio.

About Citigroup

Citigroup Inc., a diversified financial service holding company, provides various financial product and services to consumers, corporations, governments, and institutions worldwide. It operates through five segments: Services, Markets, Banking, U.S. Personal Banking, and Wealth. The Services segment includes Treasury and Trade Solutions, which provides cash management, trade, and working capital solutions to multinational corporations, financial institutions, and public sector organizations; and Securities Services, such as cross-border support for clients, local market expertise, post-trade technologies, data solutions, and various securities services solutions. The Markets segment offers sales and trading services for equities, foreign exchange, rates, spread products, and commodities to corporate, institutional, and public sector clients; and market-making services, including asset classes, risk management solutions, financing, prime brokerage, research, securities clearing, and settlement. The banking segment includes investment banking; advisory services related to mergers and acquisitions, divestitures, restructurings, and corporate defense activities; and corporate lending, which includes corporate and commercial banking. The U.S. Personal Banking segment provides co-branded cards and retail banking services. The Wealth segment provides financial services to high-net-worth clients through banking, lending, mortgages, investment, custody, and trust product offerings; and to professional industries, including law firms, consulting groups, accounting, and asset management. The company was founded in 1812 and is headquartered in New York, New York.