Contrasting MainStreet Bank (NASDAQ:MNSB) & Huntington Bancshares (NASDAQ:HBAN)

Huntington Bancshares (NASDAQ:HBAN) and MainStreet Bank (NASDAQ:MNSB) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Earnings & Valuation

This table compares Huntington Bancshares and MainStreet Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Huntington Bancshares	$12.48 billion	2.50	$2.21 billion	$1.21	12.79
MainStreet Bank	$135.62 million	1.16	$15.61 million	$1.95	11.33

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

Dividends

Huntington Bancshares pays an annual dividend of $0.62 per share and has a dividend yield of 4.0%. MainStreet Bank pays an annual dividend of $0.40 per share and has a dividend yield of 1.8%. Huntington Bancshares pays out 51.2% of its earnings in the form of a dividend. MainStreet Bank pays out 20.5% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Huntington Bancshares	16.28%	10.93%	1.12%
MainStreet Bank	12.51%	8.70%	0.74%

Risk and Volatility

Huntington Bancshares has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, MainStreet Bank has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.

Institutional & Insider Ownership

80.7% of Huntington Bancshares shares are held by institutional investors. Comparatively, 52.3% of MainStreet Bank shares are held by institutional investors. 0.7% of Huntington Bancshares shares are held by company insiders. Comparatively, 10.2% of MainStreet Bank shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Huntington Bancshares and MainStreet Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huntington Bancshares	2	7	13	1	2.57
MainStreet Bank	0	1	1	0	2.50

Huntington Bancshares currently has a consensus price target of $18.89, suggesting a potential upside of 22.08%. Given Huntington Bancshares’ stronger consensus rating and higher probable upside, research analysts clearly believe Huntington Bancshares is more favorable than MainStreet Bank.

Summary

Huntington Bancshares beats MainStreet Bank on 14 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 MainStreet Bank

MainStreet Bancshares, Inc. operates as the bank holding company for MainStreet Bank that provides various banking products and services for individuals, small to medium-sized businesses, and professional service organizations. The company offers demand, NOW, money market, savings, and sweep accounts, as well as certificates of deposit; business and consumer checking, interest-bearing checking, business account analysis, and other depository services; and cash management, wire transfer, check imaging, bill pay, remote deposit capture, and courier services. It also provides commercial loans, include government contract receivables, plant and equipment, general working capital, contract administration, and acquisition loans; commercial real estate, real estate construction, and residential real estate loans; and consumer loans comprising term loans and overdraft protection, as well as debit and credit cards. In addition, the company offers deposit insurance solutions; remote deposit of checks; and internet bill payment, online cash management, and online and mobile banking services. It operates in Herndon, Fairfax, McLean, Leesburg, Clarendon, and Washington D.C., as well as automated teller machines. The company was incorporated in 2003 and is headquartered in Fairfax, Virginia.