Comparing FXCM (OTCMKTS:GLBR) & The PNC Financial Services Group (NYSE:PNC)

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

Volatility and Risk

FXCM has a beta of -1.74, suggesting that its share price is 274% less volatile than the S&P 500. Comparatively, The PNC Financial Services Group has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FXCM	N/A	N/A	N/A	N/A	N/A
The PNC Financial Services Group	$22.10 billion	3.62	$5.89 billion	$14.62	13.91

The PNC Financial Services Group has higher revenue and earnings than FXCM.

Insider and Institutional Ownership

83.5% of The PNC Financial Services Group shares are held by institutional investors. 9.0% of FXCM shares are held by insiders. Comparatively, 0.4% of The PNC Financial Services Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FXCM	N/A	N/A	N/A
The PNC Financial Services Group	18.33%	11.07%	1.11%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FXCM	0	0	0	0	0.00
The PNC Financial Services Group	1	7	11	1	2.60

The PNC Financial Services Group has a consensus target price of $215.17, indicating a potential upside of 5.84%. 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 FXCM.

Summary

The PNC Financial Services Group beats FXCM on 10 of the 11 factors compared between the two stocks.

About FXCM

Global Brokerage, Inc., through its subsidiaries, provides online foreign exchange (FX) trading, contracts for difference trading, spread betting, and related services to retail and institutional customers worldwide. Its proprietary trading platform presents its FX customers with the price quotations on various currency pairs from a range of global banks, financial institutions, and market makers. The company also acts as a credit intermediary and simultaneously entering into trades with the customer and the FX market maker. It offers its customers access to over-the-counter FX markets. The company was formerly known as FXCM Inc. and changed its name to Global Brokerage, Inc. in February 2017. Global Brokerage, Inc. was incorporated in 2010 and is based in New York, New York. On March 23, 2023, an involuntary petition for liquidation under Chapter 7 was filed against Global Brokerage, Inc. in the U.S. Bankruptcy Court for the Southern District of New York. On May 19, 2023, the involuntary petition was approved by the Court.

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.