WallStSmart

First Merchants Corporation (FRME)vsPNC Financial Services Group Inc (PNC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PNC Financial Services Group Inc generates 3378% more annual revenue ($22.32B vs $641.70M). FRME leads profitability with a 35.2% profit margin vs 31.1%. FRME appears more attractively valued with a PEG of 1.40. PNC earns a higher WallStSmart Score of 73/100 (B).

FRME

Buy

64

out of 100

Grade: C+

Growth: 4.0Profit: 7.5Value: 7.3Quality: 3.8
Piotroski: 5/9Altman Z: -0.11

PNC

Strong Buy

73

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 10.0Quality: 5.0
Piotroski: 5/9Altman Z: 0.15
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FRMESignificantly Overvalued (-59.4%)

Margin of Safety

-59.4%

Fair Value

$26.38

Current Price

$38.18

$11.80 premium

UndervaluedFair: $26.38Overvalued
PNCUndervalued (+73.5%)

Margin of Safety

+73.5%

Fair Value

$776.41

Current Price

$205.95

$570.46 discount

UndervaluedFair: $776.41Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FRME4 strengths · Avg: 10.0/10
P/E RatioValuation
9.8x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
35.2%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
42.7%10/10

Strong operational efficiency at 42.7%

PNC6 strengths · Avg: 9.2/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Profit MarginProfitability
31.1%10/10

Keeps 31 of every $100 in revenue as profit

Operating MarginProfitability
39.3%10/10

Strong operational efficiency at 39.3%

Market CapQuality
$83.43B9/10

Large-cap with strong market position

P/E RatioValuation
12.4x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
29.1%8/10

Earnings expanding 29.1% YoY

Areas to Watch

FRME3 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-4.6%2/10

Revenue declined 4.6%

EPS GrowthGrowth
-10.9%2/10

Earnings declined 10.9%

Altman Z-ScoreHealth
-0.112/10

Distress zone — elevated risk

PNC2 concerns · Avg: 3.0/10
PEG RatioValuation
2.174/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.152/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : FRME

The strongest argument for FRME centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 35.2% and operating margin at 42.7%. PEG of 1.40 suggests the stock is reasonably priced for its growth.

Bull Case : PNC

The strongest argument for PNC centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 31.1% and operating margin at 39.3%.

Bear Case : FRME

The primary concerns for FRME are Revenue Growth, EPS Growth, Altman Z-Score.

Bear Case : PNC

The primary concerns for PNC are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

FRME profiles as a declining stock while PNC is a mature play — different risk/reward profiles.

PNC carries more volatility with a beta of 0.97 — expect wider price swings.

PNC is growing revenue faster at 9.6% — sustainability is the question.

PNC generates stronger free cash flow (2.3B), providing more financial flexibility.

Bottom Line

PNC scores higher overall (73/100 vs 64/100), backed by strong 31.1% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

First Merchants Corporation

FINANCIAL SERVICES · BANKS - REGIONAL · USA

First Merchants Corporation is the financial holding company for First Merchants Bank providing community banking services. The company is headquartered in Muncie, Indiana.

PNC Financial Services Group Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

PNC Financial Services Group, Inc. (stylized as PNC) is a bank holding company and financial services corporation based in Pittsburgh, Pennsylvania. Its banking subsidiary, PNC Bank, operates in 21 states and the District of Columbia with 2,296 branches and 9,051 ATMs. The company also provides financial services such as asset management, wealth management, estate planning, loan servicing, and information processing.

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