Huntington Bancshares (HBAN) versus Bank of America (BAC) Head to Head Comparison

Huntington Bancshares (NASDAQ: HBAN) and Bank of America (NYSE:BAC) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Volatility & Risk

Huntington Bancshares has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500. Comparatively, Bank of America has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.

Insider & Institutional Ownership

74.5% of Huntington Bancshares shares are owned by institutional investors. Comparatively, 67.0% of Bank of America shares are owned by institutional investors. 1.1% of Huntington Bancshares shares are owned by company insiders. Comparatively, 0.1% of Bank of America shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Huntington Bancshares pays an annual dividend of $0.44 per share and has a dividend yield of 3.0%. Bank of America pays an annual dividend of $0.48 per share and has a dividend yield of 1.6%. Huntington Bancshares pays out 44.9% of its earnings in the form of a dividend. Bank of America pays out 26.2% 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. Huntington Bancshares has increased its dividend for 5 consecutive years and Bank of America has increased its dividend for 4 consecutive years. Huntington Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Huntington Bancshares and Bank of America’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Huntington Bancshares $4.74 billion 3.46 $1.19 billion $0.98 15.20
Bank of America $100.26 billion 3.04 $18.23 billion $1.83 16.27

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

Profitability

This table compares Huntington Bancshares and Bank of America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Huntington Bancshares 26.97% 12.64% 1.20%
Bank of America 19.65% 9.40% 1.01%

Analyst Ratings

This is a summary of recent recommendations and price targets for Huntington Bancshares and Bank of America, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Huntington Bancshares 0 9 10 0 2.53
Bank of America 0 7 11 0 2.61

Huntington Bancshares presently has a consensus target price of $17.03, suggesting a potential upside of 14.27%. Bank of America has a consensus target price of $32.15, suggesting a potential upside of 7.98%. Given Huntington Bancshares’ higher possible upside, equities research analysts plainly believe Huntington Bancshares is more favorable than Bank of America.

Summary

Huntington Bancshares beats Bank of America on 10 of the 17 factors compared between the two stocks.

About Huntington Bancshares

Huntington Bancshares Incorporated operates as a holding company for The Huntington National Bank that provides commercial, small business, consumer, and mortgage banking services. The company's Consumer and Business Banking segment offers financial products and services, such as checking accounts, savings accounts, money market accounts, certificates of deposit, consumer loans, and small business loans; and investments, mortgages, insurance, interest rate risk protection, and foreign exchange and treasury management services. Its Commercial Banking segment provides corporate risk management services; institutional sales, trading, and underwriting services; treasury management services; and other financing solutions, as well as lends real estate developers, REITs, and other customers. The company's Vehicle Finance segment offers financing for automobiles, light-duty trucks, recreational vehicles, and marine craft at franchised dealerships; and financing the acquisition of new and used vehicle inventory of franchised dealerships. Its Regional Banking and The Huntington Private Client Group segment provides deposits, lending, other banking, wealth management, investment and portfolio management, fiduciary administration, trust, retirement plan and trust, and institutional and mutual fund custody services. The company provides online, mobile, and telephone banking services, as well as ATM services. As of December 31, 2017, it had 10 private client group offices and 956 branches. The company was founded in 1866 and is headquartered in Columbus, Ohio.

About Bank of America

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small- and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, CDs and IRAs, noninterest- and interest-bearing checking accounts, and investment accounts and products; and credit and debit cards, residential mortgages, and home equity loans, as well as direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans. This segment provides its products and services through approximately 4,500 financial centers; 16,000 ATMs; call centers; and digital banking platforms. The GWIM segment offers investment management, brokerage, banking, and trust and retirement products; and wealth management solutions targeted to high net worth and ultra high net worth clients, as well as customized solutions to meet clients' wealth structuring, investment management, and trust and banking needs, including specialty asset management services. The Global Banking segment provides lending products and services, including commercial loans, leases, commitment facilities, trade finance, and real estate and asset-based lending; treasury solutions, such as treasury management, foreign exchange, and short-term investing options; working capital management solutions; and debt and equity underwriting and distribution, and merger-related and other advisory services. The Global Markets segment offers market-making, financing, securities clearing, settlement, and custody services, as well as risk management, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1874 and is based in Charlotte, North Carolina.

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