Huntington Bancshares (HBAN) versus The Competition Critical Analysis

Huntington Bancshares (NASDAQ:HBAN) is one of 919 publicly-traded companies in the “Banks” industry, but how does it contrast to its competitors? We will compare Huntington Bancshares to similar businesses based on the strength of its valuation, dividends, profitability, risk, analyst recommendations, institutional ownership and earnings.

Analyst Recommendations

This is a summary of recent ratings for Huntington Bancshares and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huntington Bancshares	2	8	12	1	2.52
Huntington Bancshares Competitors	7497	30259	27869	1492	2.35

Huntington Bancshares presently has a consensus target price of $18.89, suggesting a potential upside of 19.38%. As a group, “Banks” companies have a potential upside of 14.43%. Given Huntington Bancshares’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Huntington Bancshares is more favorable than its competitors.

Dividends

Huntington Bancshares pays an annual dividend of $0.62 per share and has a dividend yield of 3.9%. Huntington Bancshares pays out 51.2% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend. Huntington Bancshares lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Huntington Bancshares and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Huntington Bancshares	16.28%	10.93%	1.12%
Huntington Bancshares Competitors	15.62%	9.43%	0.93%

Insider & Institutional Ownership

80.7% of Huntington Bancshares shares are held by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are held by institutional investors. 0.7% of Huntington Bancshares shares are held by company insiders. Comparatively, 9.7% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Huntington Bancshares has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Huntington Bancshares’ competitors have a beta of 0.61, suggesting that their average share price is 39% less volatile than the S&P 500.

Valuation and Earnings

This table compares Huntington Bancshares and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Huntington Bancshares	$12.48 billion	$2.21 billion	13.07
Huntington Bancshares Competitors	$9.95 billion	$2.42 billion	21.03

Huntington Bancshares has higher revenue, but lower earnings than its competitors. Huntington Bancshares is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Huntington Bancshares beats its competitors on 10 of the 15 factors compared.

Huntington Bancshares Company Profile

Huntington Bancshares Incorporated is a regional bank holding company headquartered in Columbus, Ohio. Its principal subsidiary, The Huntington National Bank, provides consumer and commercial banking services to individuals, businesses, and institutions. The company traces its roots to 1866, when P.W. Huntington & Company opened in Columbus. Huntington’s offerings include checking and savings accounts, credit cards, mortgages, auto loans, business lending, treasury management, wealth management, and investment services.