Financial Analysis: JPMorgan Chase & Co. (NYSE:JPM) & Huntington Bancshares (NYSE:HBAN)

JPMorgan Chase & Co. (NYSE:JPM) and Huntington Bancshares (NASDAQ:HBAN) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Profitability

This table compares JPMorgan Chase & Co. and Huntington Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
JPMorgan Chase & Co. 21.61% 12.52% 1.04%
Huntington Bancshares 19.65% 10.40% 1.00%

Valuation and Earnings

This table compares JPMorgan Chase & Co. and Huntington Bancshares’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
JPMorgan Chase & Co. $142.42 billion 1.99 $36.43 billion $10.48 8.87
Huntington Bancshares $5.66 billion 1.59 $1.41 billion $1.27 6.98

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

Analyst Recommendations

This is a breakdown of recent ratings for JPMorgan Chase & Co. and Huntington Bancshares, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JPMorgan Chase & Co. 0 9 10 0 2.53
Huntington Bancshares 1 9 5 0 2.27

JPMorgan Chase & Co. currently has a consensus price target of $110.34, indicating a potential upside of 18.64%. Huntington Bancshares has a consensus price target of $10.95, indicating a potential upside of 23.47%. Given Huntington Bancshares’ higher possible upside, analysts clearly believe Huntington Bancshares is more favorable than JPMorgan Chase & Co..

Risk & Volatility

JPMorgan Chase & Co. has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Huntington Bancshares has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.

Dividends

JPMorgan Chase & Co. pays an annual dividend of $3.60 per share and has a dividend yield of 3.9%. Huntington Bancshares pays an annual dividend of $0.60 per share and has a dividend yield of 6.8%. JPMorgan Chase & Co. pays out 34.4% of its earnings in the form of a dividend. Huntington Bancshares pays out 47.2% 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. JPMorgan Chase & Co. has raised its dividend for 9 consecutive years and Huntington Bancshares has raised its dividend for 7 consecutive years.

Institutional & Insider Ownership

71.6% of JPMorgan Chase & Co. shares are owned by institutional investors. Comparatively, 74.0% of Huntington Bancshares shares are owned by institutional investors. 0.8% of JPMorgan Chase & Co. shares are owned by insiders. Comparatively, 0.7% of Huntington Bancshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

JPMorgan Chase & Co. beats Huntington Bancshares on 13 of the 17 factors compared between the two stocks.

JPMorgan Chase & Co. Company Profile

JPMorgan Chase & Co. operates as a financial services company worldwide. It operates through four segments: Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and Asset & Wealth Management (AWM). The CCB segment offers deposit and investment products and services to consumers; lending, deposit, and cash management and payment solutions to small businesses; mortgage origination and servicing activities; residential mortgages and home equity loans; and credit card, payment processing, auto loan, and leasing services. The CIB segment provides investment banking products and services, including advising on corporate strategy and structure, and capital-raising in equity and debt markets, as well as loan origination and syndication; treasury services, such as cash management and liquidity solutions; and cash securities and derivative instruments, risk management solutions, prime brokerage, and research. This segment also offers securities services, including custody, fund accounting and administration, and securities lending products for asset managers, insurance companies, and public and private investment funds. The CB segment provides financial solutions, including lending, treasury, investment banking, and asset management to corporations, municipalities, financial institutions, and nonprofit entities, as well as financing to real estate investors and owners. The AWM segment offers investment and wealth management services across various asset classes, such as equities, fixed income, alternatives, and money market funds; multi-asset investment management services; retirement products and services; and brokerage and banking services comprising trusts, estates, loans, mortgages, and deposits. The company also provides ATMs; digital covering online and mobile; and telephone banking services. JPMorgan Chase & Co. was founded in 1799 and is headquartered in New York, New York.

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.

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