Critical Comparison: Huntington Bancshares (NASDAQ:HBAN) & FB Financial (NYSE:FBK)

FB Financial (NYSE:FBK) and Huntington Bancshares (NASDAQ:HBAN) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Profitability

This table compares FB Financial and Huntington Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FB Financial	22.62%	12.32%	1.44%
Huntington Bancshares	16.64%	11.19%	1.12%

Valuation and Earnings

This table compares FB Financial and Huntington Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FB Financial	$877.84 million	2.93	$122.62 million	$4.50	11.44
Huntington Bancshares	$12.48 billion	2.48	$2.21 billion	$1.29	11.90

Huntington Bancshares has higher revenue and earnings than FB Financial. FB Financial is trading at a lower price-to-earnings ratio than Huntington Bancshares, indicating that it is currently the more affordable of the two stocks.

Dividends

FB Financial pays an annual dividend of $0.84 per share and has a dividend yield of 1.6%. Huntington Bancshares pays an annual dividend of $0.62 per share and has a dividend yield of 4.0%. FB Financial pays out 18.7% of its earnings in the form of a dividend. Huntington Bancshares pays out 48.1% 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. FB Financial has raised its dividend for 8 consecutive years.

Analyst Ratings

This is a breakdown of current recommendations and price targets for FB Financial and Huntington Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FB Financial	0	0	6	1	3.14
Huntington Bancshares	2	6	13	1	2.59

FB Financial currently has a consensus target price of $64.43, indicating a potential upside of 25.10%. Huntington Bancshares has a consensus target price of $19.19, indicating a potential upside of 25.02%. Given FB Financial’s stronger consensus rating and higher possible upside, equities analysts plainly believe FB Financial is more favorable than Huntington Bancshares.

Volatility & Risk

FB Financial has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Huntington Bancshares has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Institutional and Insider Ownership

65.4% of FB Financial shares are owned by institutional investors. Comparatively, 80.7% of Huntington Bancshares shares are owned by institutional investors. 2.0% of FB Financial shares are owned by company insiders. Comparatively, 0.7% of Huntington Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

FB Financial beats Huntington Bancshares on 11 of the 17 factors compared between the two stocks.

About FB Financial

FB Financial Corporation operates as a bank holding company for FirstBank that provides a suite of commercial and consumer banking services to businesses, professionals, and individuals. The company operates in segments, such as Banking and Mortgage. It offers checking, demand, money market, and savings accounts; deposit and lending products and services to corporate, commercial, and consumer customers; and time deposits and certificates of deposits, as well as residential mortgage loans. The company also provides owner-occupied and non-owner-occupied real estate commercial, residential real estate 1-4 family mortgage, multi-family residential, commercial and industrial, construction, land acquisition, residential lines of credit, and land development loans; and consumer and other loans, such as car, boat, and other recreational vehicle loans, as well as manufactured homes without real estate and personal lines of credit. In addition, the company offers mortgage banking services through its bank branch network and mortgage banking offices in the southeastern United States; direct-to-consumer internet delivery channel; and trust, insurance, and investment services, as well as online and mobile banking services. The company operates full-service bank branches and limited-service branches locations throughout Tennessee, Nashville, Chattanooga, Knoxville, Memphis, Jackson, Birmingham, Florence, Huntsville, Alabama, Bowling Green, and Kentucky; and mortgage offices throughout the southeastern United States. The company was formerly known as First South Bancorp, Inc. and changed its name to FB Financial Corporation in 2016. FB Financial Corporation was founded in 1906 and is headquartered in Nashville, Tennessee.

About Huntington Bancshares

Huntington Bancshares Incorporated operates as the bank holding company for The Huntington National Bank that provides commercial, consumer, and mortgage banking services in the United States. The company offers financial products and services to consumer and business customers, including deposits, lending, payments, mortgage banking, dealer financing, investment management, trust, brokerage, insurance, and other financial products and services. It also provides 24-hour grace, asterisk-free checking, money scout, $50 safety zone, standby cash, early pay, instant access, savings goal getter, and Huntington heads up; digitally powered consumer and business financial solutions to consumer lending, regional banking, branch banking, and wealth management customers; direct and indirect consumer loans, as well as dealer finance loans and deposits; and private banking, wealth management and legacy planning through investment and portfolio management, fiduciary administration and trust, institutional custody, and full-service retail brokerage investment services. The company offers equipment financing, asset-based lending, distribution finance, structured lending, and municipal financing solutions, as well as Huntington ChoicePay. In addition, it offers lending, liquidity, treasury management and other payment services, and capital markets; government and non-profits, healthcare, technology and telecommunications, franchises, financial sponsors, and global services; and corporate risk management, institutional sales and trading, debt and equity issuance, and additional advisory services. The company offers its products through a network of channels, including branches and ATMs, online and mobile banking, and through customer call centers to customers in middle market banking, corporate, specialty, and government banking, asset finance, commercial real estate banking, and capital markets. The company was founded in 1866 and is headquartered in Columbus, Ohio.