Huntington Bancshares (NASDAQ:HBAN – Get Free Report) and FB Financial (NYSE:FBK – Get Free Report) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.
Dividends
Huntington Bancshares pays an annual dividend of $0.62 per share and has a dividend yield of 4.0%. FB Financial pays an annual dividend of $0.84 per share and has a dividend yield of 1.6%. Huntington Bancshares pays out 48.1% of its earnings in the form of a dividend. FB Financial pays out 22.5% 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 increased its dividend for 8 consecutive years.
Profitability
This table compares Huntington Bancshares and FB Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Huntington Bancshares | 16.64% | 11.19% | 1.12% |
| FB Financial | 19.00% | 12.08% | 1.44% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Huntington Bancshares | $12.48 billion | 2.49 | $2.21 billion | $1.29 | 11.91 |
| FB Financial | $877.84 million | 3.01 | $122.62 million | $3.73 | 14.19 |
Huntington Bancshares has higher revenue and earnings than FB Financial. Huntington Bancshares is trading at a lower price-to-earnings ratio than FB Financial, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Huntington Bancshares and FB Financial, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Huntington Bancshares | 2 | 6 | 13 | 1 | 2.59 |
| FB Financial | 0 | 0 | 6 | 1 | 3.14 |
Huntington Bancshares presently has a consensus target price of $19.19, indicating a potential upside of 24.86%. FB Financial has a consensus target price of $64.67, indicating a potential upside of 22.15%. Given Huntington Bancshares’ higher probable upside, equities research analysts clearly believe Huntington Bancshares is more favorable than FB Financial.
Risk and Volatility
Huntington Bancshares has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, FB Financial has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
Insider & Institutional Ownership
80.7% of Huntington Bancshares shares are held by institutional investors. Comparatively, 65.4% of FB Financial shares are held by institutional investors. 0.7% of Huntington Bancshares shares are held by insiders. Comparatively, 2.0% of FB Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
FB Financial beats Huntington Bancshares on 11 of the 17 factors compared between the two stocks.
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.
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.
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