WallStSmart

Heritage Commerce Corp (HTBK)vsPNC Financial Services Group Inc (PNC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PNC Financial Services Group Inc generates 11308% more annual revenue ($22.32B vs $195.65M). PNC leads profitability with a 31.1% profit margin vs 24.4%. HTBK appears more attractively valued with a PEG of 1.50. HTBK earns a higher WallStSmart Score of 74/100 (B).

HTBK

Strong Buy

74

out of 100

Grade: B

Growth: 8.7Profit: 6.5Value: 10.0Quality: 5.0

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

HTBKUndervalued (+63.5%)

Margin of Safety

+63.5%

Fair Value

$36.50

Current Price

$12.43

$24.07 discount

UndervaluedFair: $36.50Overvalued
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

HTBK6 strengths · Avg: 8.8/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Operating MarginProfitability
45.3%10/10

Strong operational efficiency at 45.3%

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

P/E RatioValuation
15.9x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
17.7%8/10

17.7% revenue growth

EPS GrowthGrowth
45.2%8/10

Earnings expanding 45.2% YoY

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

HTBK2 concerns · Avg: 3.0/10
Market CapQuality
$765.61M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.8%3/10

ROE of 6.8% — below average capital efficiency

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 : HTBK

The strongest argument for HTBK centers on Price/Book, Operating Margin, Profit Margin. Profitability is solid with margins at 24.4% and operating margin at 45.3%. Revenue growth of 17.7% demonstrates continued momentum.

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 : HTBK

The primary concerns for HTBK are Market Cap, Return on Equity.

Bear Case : PNC

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

Key Dynamics to Monitor

HTBK profiles as a growth 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.

HTBK is growing revenue faster at 17.7% — sustainability is the question.

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

Bottom Line

HTBK scores higher overall (74/100 vs 73/100), backed by strong 24.4% margins and 17.7% revenue growth. PNC offers better value entry with a 73.5% margin of safety. Both earn "Strong Buy" and "Strong 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.

Heritage Commerce Corp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Heritage Commerce Corp is the banking holding company for Heritage Bank of Commerce providing various commercial and personal banking services to residents and the business / professional community in California. The company is headquartered in San Jose, California.

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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