Reviewing Nomura (NYSE:NMR) & The PNC Financial Services Group (NYSE:PNC)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nomura	8.06%	10.58%	0.65%
The PNC Financial Services Group	19.30%	11.47%	1.16%

Earnings & Valuation

This table compares Nomura and The PNC Financial Services Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nomura	$1,730.10 billion	0.01	$2.25 billion	$0.83	8.33
The PNC Financial Services Group	$22.57 billion	3.25	$5.89 billion	$15.48	12.04

The PNC Financial Services Group has lower revenue, but higher earnings than Nomura. Nomura 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.

Dividends

Nomura pays an annual dividend of $0.37 per share and has a dividend yield of 5.4%. The PNC Financial Services Group pays an annual dividend of $6.80 per share and has a dividend yield of 3.6%. Nomura pays out 44.6% of its earnings in the form of a dividend. The PNC Financial Services Group pays out 43.9% 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. The PNC Financial Services Group has increased its dividend for 14 consecutive years.

Insider & Institutional Ownership

15.1% of Nomura shares are owned by institutional investors. Comparatively, 83.5% of The PNC Financial Services Group shares are owned by institutional investors. 0.0% of Nomura shares are owned by insiders. Comparatively, 0.4% of The PNC Financial Services Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Nomura and The PNC Financial Services Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nomura	0	1	0	1	3.00
The PNC Financial Services Group	1	6	15	1	2.70

The PNC Financial Services Group has a consensus target price of $218.47, indicating a potential upside of 17.22%. Given The PNC Financial Services Group’s higher possible upside, analysts clearly believe The PNC Financial Services Group is more favorable than Nomura.

Volatility and Risk

Nomura has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, The PNC Financial Services Group has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Summary

The PNC Financial Services Group beats Nomura on 14 of the 17 factors compared between the two stocks.

About Nomura

Nomura Holdings, Inc. provides various financial services to individuals, corporations, financial institutions, governments, and governmental agencies worldwide. It operates through three segments: Retail, Investment Management, and Wholesale. The Retail segment offers various financial products and investment consultation services. The Investment Management segment engages in the management of funds, investment trusts, and other investment solutions; and provision of investment advisory, custodial, and administrative services. The Wholesale segment is involved in the research, sale, trading, agency execution, and market-making of fixed income and equity-related products. This segment also engages in underwriting various securities and other financial instruments, such as various classes of shares, convertible and exchangeable securities, investment grade and high yield debts, sovereign and emerging market debts, structured securities, and other securities; arranging private placements, as well as other capital raising activities; and the provision of financial advisory services on business transactions comprising mergers and acquisitions, divestitures, spin-offs, capital structuring, corporate defense activities, leveraged buyouts, and risk solutions. The company was formerly known as The Nomura Securities Co., Ltd. and changed its name to Nomura Holdings, Inc. in October 2001. Nomura Holdings, Inc. was incorporated in 1925 and is headquartered in Tokyo, Japan.

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.