Financial Review: Hawthorn Bancshares (NASDAQ:HWBK) vs. Huntington Bancshares (NASDAQ:HBAN)

Hawthorn Bancshares (NASDAQ:HWBK) and Huntington Bancshares (NASDAQ:HBAN) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Hawthorn Bancshares 16.88% 10.78% 0.82%
Huntington Bancshares 19.65% 10.40% 1.00%

Dividends

Hawthorn Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 2.5%. Huntington Bancshares pays an annual dividend of $0.60 per share and has a dividend yield of 6.6%. Huntington Bancshares pays out 47.2% of its earnings in the form of a dividend. Hawthorn Bancshares has increased its dividend for 10 consecutive years and Huntington Bancshares has increased its dividend for 7 consecutive years.

Analyst Recommendations

This is a summary of current recommendations and price targets for Hawthorn Bancshares and Huntington Bancshares, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hawthorn Bancshares 0 0 0 0 N/A
Huntington Bancshares 1 9 5 0 2.27

Huntington Bancshares has a consensus price target of $10.95, indicating a potential upside of 21.22%. Given Huntington Bancshares’ higher probable upside, analysts clearly believe Huntington Bancshares is more favorable than Hawthorn Bancshares.

Valuation & Earnings

This table compares Hawthorn Bancshares and Huntington Bancshares’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hawthorn Bancshares $72.91 million 1.71 $16.11 million N/A N/A
Huntington Bancshares $5.66 billion 1.62 $1.41 billion $1.27 7.11

Huntington Bancshares has higher revenue and earnings than Hawthorn Bancshares.

Volatility and Risk

Hawthorn Bancshares has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, Huntington Bancshares has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500.

Insider and Institutional Ownership

31.2% of Hawthorn Bancshares shares are held by institutional investors. Comparatively, 74.0% of Huntington Bancshares shares are held by institutional investors. 10.8% of Hawthorn Bancshares shares are held by company insiders. Comparatively, 0.7% of Huntington Bancshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Huntington Bancshares beats Hawthorn Bancshares on 9 of the 15 factors compared between the two stocks.

Hawthorn Bancshares Company Profile

Hawthorn Bancshares, Inc. operates as the bank holding company for Hawthorn Bank that provides various banking services in Missouri. The company offers checking and savings accounts, and certificates of deposit; and a range of lending services, including commercial and industrial, single payment personal, installment, and commercial and residential real estate loans. It also provides trust services, Internet banking services, brokerage services, safety deposit boxes, and debit cards. The company operates 23 banking offices. Hawthorn Bancshares, Inc. was founded in 1865 and is based in Jefferson City, Missouri.

Huntington Bancshares Company Profile

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 operates through four business segments: Consumer and Business Banking, Commercial Banking, Vehicle Finance, and Regional Banking and The Huntington Private Client Group (RBHPCG). The Consumer and Business Banking segment offers financial products and services, such as checking accounts, savings accounts, money market accounts, certificates of deposit, consumer loans, mortgage loans, credit cards, and small business loans, as well as investment products. It also provides insurance, interest rate risk protection, foreign exchange, and treasury management services, as well as online, mobile, and telephone banking services. The Commercial Banking segment offers banking solutions and asset finance services; corporate risk management services; institutional sales, trading, and underwriting services; institutional corporate banking services; treasury management services; and other financing solutions, as well as lends real estate developers, REITs, and other customers. The Vehicle Finance segment provides financing to consumers for the purchase of automobiles, light-duty trucks, recreational vehicles, and marine craft at franchised and other select dealerships, as well as to franchised dealerships for the acquisition of new and used inventory. The RBHPCG segment provides deposits, lending, banking, wealth management, investment and portfolio management, fiduciary administration, trust, retirement plan, and institutional and mutual fund custody services. As of December 31, 2018, the company operated through 944 branches located in Ohio, Michigan, Pennsylvania, Indiana, Illinois, Wisconsin, West Virginia, and Kentucky; and 10 private client group offices. Huntington Bancshares Incorporated was founded in 1866 and is headquartered in Columbus, Ohio.

Receive News & Ratings for Hawthorn Bancshares Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hawthorn Bancshares and related companies with MarketBeat.com's FREE daily email newsletter.