Critical Survey: The PNC Financial Services Group (NYSE:PNC) versus Shore Community Bank (OTCMKTS:SHRC)

Shore Community Bank (OTCMKTS:SHRC) and The PNC Financial Services Group (NYSE:PNC) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Valuation & Earnings

This table compares Shore Community Bank and The PNC Financial Services Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shore Community Bank	N/A	N/A	N/A	N/A	N/A
The PNC Financial Services Group	$20.62 billion	3.72	$5.58 billion	$11.83	16.34

The PNC Financial Services Group has higher revenue and earnings than Shore Community Bank.

Analyst Recommendations

This is a summary of current ratings for Shore Community Bank and The PNC Financial Services Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shore Community Bank	0	0	0	0	0.00
The PNC Financial Services Group	2	6	8	0	2.38

The PNC Financial Services Group has a consensus target price of $200.81, indicating a potential upside of 3.90%. Given The PNC Financial Services Group’s stronger consensus rating and higher probable upside, analysts clearly believe The PNC Financial Services Group is more favorable than Shore Community Bank.

Insider and Institutional Ownership

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

Profitability

This table compares Shore Community Bank and The PNC Financial Services Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shore Community Bank	N/A	N/A	N/A
The PNC Financial Services Group	14.97%	10.88%	1.02%

Summary

The PNC Financial Services Group beats Shore Community Bank on 9 of the 9 factors compared between the two stocks.

About Shore Community Bank

Shore Community Bank, a state chartered bank, provides banking products and services to businesses and individuals in Ocean County, New Jersey. The company's deposit products include checking accounts, savings accounts, certificates of deposit, individual retirement accounts, money market accounts, visa/mastercard merchant deposit accounts, and payroll/direct deposit accounts. Its loan portfolio comprises personal, home equity, term, and demand loans; lines of credit; letters of credit; commercial mortgages; and construction lending. The company also offers direct deposit and electronic transfer, wire transfer, ACH origination, night depository, tenant rent security, signature guarantee, remote deposit, notary, and automated asset management services; safe deposit boxes, escrow accounts, and debit cards, as well as online and telephone banking services. As of April 28, 2016, it operated five banking offices located in Toms River, Jackson, and Manahawkin, New Jersey. Shore Community Bank was incorporated in 1996 and is headquartered in Toms River, New Jersey.

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.