Huntington Bancshares (NASDAQ:HBAN – Get Free Report) and Enterprise Financial Services (NASDAQ:EFSC – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.
Risk & Volatility
Huntington Bancshares has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Enterprise Financial Services has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.
Dividends
Huntington Bancshares pays an annual dividend of $0.62 per share and has a dividend yield of 3.5%. Enterprise Financial Services pays an annual dividend of $1.28 per share and has a dividend yield of 2.2%. Huntington Bancshares pays out 43.4% of its earnings in the form of a dividend. Enterprise Financial Services pays out 24.9% 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. Enterprise Financial Services has increased its dividend for 11 consecutive years.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Huntington Bancshares | 1 | 4 | 14 | 2 | 2.81 |
| Enterprise Financial Services | 0 | 1 | 3 | 0 | 2.75 |
Huntington Bancshares presently has a consensus price target of $19.64, indicating a potential upside of 9.65%. Enterprise Financial Services has a consensus price target of $65.67, indicating a potential upside of 14.84%. Given Enterprise Financial Services’ higher probable upside, analysts clearly believe Enterprise Financial Services is more favorable than Huntington Bancshares.
Earnings & Valuation
This table compares Huntington Bancshares and Enterprise Financial Services”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Huntington Bancshares | $11.96 billion | 2.19 | $1.94 billion | $1.43 | 12.52 |
| Enterprise Financial Services | $593.12 million | 3.57 | $185.27 million | $5.14 | 11.12 |
Huntington Bancshares has higher revenue and earnings than Enterprise Financial Services. Enterprise Financial Services is trading at a lower price-to-earnings ratio than Huntington Bancshares, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Huntington Bancshares and Enterprise Financial Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Huntington Bancshares | 18.06% | 12.14% | 1.09% |
| Enterprise Financial Services | 19.98% | 10.82% | 1.24% |
Institutional & Insider Ownership
80.7% of Huntington Bancshares shares are owned by institutional investors. Comparatively, 72.2% of Enterprise Financial Services shares are owned by institutional investors. 0.9% of Huntington Bancshares shares are owned by insiders. Comparatively, 2.3% of Enterprise Financial Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Huntington Bancshares beats Enterprise Financial Services on 10 of the 18 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 Enterprise Financial Services
Enterprise Financial Services Corp operates as the holding company for Enterprise Bank & Trust that offers banking and wealth management services to individuals and corporate customers primarily in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico. It provides checking, savings, money market accounts, and certificates of deposit. The company also provides commercial and industrial, commercial real estate, real estate construction and development, residential real estate, small business administration, agricultural, consumer, and other loan products. In addition, it offers treasury management and international trade services; tax credit brokerage services; life insurance premium and sponsor finance; tax credit related lending; other deposit accounts, such as community associations, property management, third party escrow, and trust services; treasury management product and services; customized solutions and products; cash management; fiduciary, investment management, and financial advisory services; and customer hedging products, including international banking, card services, and tax credit businesses. Further, the company provides online, device applications, text, and voice banking; remote deposit capture; internet banking, mobile banking, cash management, positive pay services, fraud detection and prevention, automated payables, check image, and statement and document imaging; and controlled disbursements, repurchase agreements, and sweep investment accounts. Enterprise Financial Services Corp was founded in 1988 and is headquartered in Clayton, Missouri.
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