NewtekOne (NASDAQ:NEWT – Get Rating) and The PNC Financial Services Group (NYSE:PNC – Get Rating) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.
Profitability
This table compares NewtekOne and The PNC Financial Services Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NewtekOne | 37.47% | 13.29% | 5.13% |
| The PNC Financial Services Group | 25.73% | 12.88% | 1.11% |
Risk and Volatility
NewtekOne has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, The PNC Financial Services Group has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.
Insider & Institutional Ownership
Valuation & Earnings
This table compares NewtekOne and The PNC Financial Services Group’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NewtekOne | $86.24 million | 3.65 | $32.31 million | $1.34 | 9.55 |
| The PNC Financial Services Group | $23.54 billion | 2.16 | $6.04 billion | $13.87 | 9.16 |
The PNC Financial Services Group has higher revenue and earnings than NewtekOne. The PNC Financial Services Group is trading at a lower price-to-earnings ratio than NewtekOne, indicating that it is currently the more affordable of the two stocks.
Dividends
NewtekOne pays an annual dividend of $2.80 per share and has a dividend yield of 21.9%. The PNC Financial Services Group pays an annual dividend of $6.00 per share and has a dividend yield of 4.7%. NewtekOne pays out 209.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The PNC Financial Services Group pays out 43.3% of its earnings in the form of a dividend. The PNC Financial Services Group has increased its dividend for 11 consecutive years.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for NewtekOne and The PNC Financial Services Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NewtekOne | 0 | 3 | 0 | 0 | 2.00 |
| The PNC Financial Services Group | 2 | 5 | 8 | 0 | 2.40 |
NewtekOne presently has a consensus target price of $17.00, indicating a potential upside of 32.81%. The PNC Financial Services Group has a consensus target price of $179.69, indicating a potential upside of 41.38%. Given The PNC Financial Services Group’s stronger consensus rating and higher probable upside, analysts plainly believe The PNC Financial Services Group is more favorable than NewtekOne.
Summary
The PNC Financial Services Group beats NewtekOne on 9 of the 17 factors compared between the two stocks.
About NewtekOne
NewtekOne, Inc. is a non-diversified closed-end management investment company engaged in the provision of business and financial solutions. It offers loans, payments, payroll and benefits, web solutions, insurance, and technology solutions. The company was founded by Barry Sloane in 1998 and is headquartered in Boca Raton, FL.
About The PNC Financial Services Group
The PNC Financial Services Group, Inc. is a holding company, which engages in the provision of financial services. It operates through the following segments: Retail Banking, Corporate and Institutional Banking, Asset Management Group, and Other. The Retail Banking segment offers deposit, lending, brokerage, investment management, and cash management products and services to consumer and small business customers. The Corporate and Institutional segment covers the lending, treasury management, and capital markets-related products and services to mid-sized and large corporations, government, and not-for-profit entities. The Asset Management Group segment includes personal wealth management for high net worth and ultra-high net worth clients and institutional asset management. The company was founded in 1983 and is headquartered in Pittsburgh, PA.
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