Huntington Bancshares (NASDAQ:HBAN) vs. First Financial Bancorp (NASDAQ:FFBC) Critical Comparison

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First Financial Bancorp (NASDAQ: FFBC – Get Rating) and Huntington Bancshares (NASDAQ: HBAN – Get Rating) are both finance companies, but which is the best investment? We will compare the two companies based on institutional ownership strength, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Volatility and risk

First Financial Bancorp has a beta of 1.05, indicating its stock price is 5% more volatile than the S&P 500. In contrast, Huntington Bancshares has a beta of 1.18, indicating its stock price is 18 % more volatile than the S&P 500.

Dividends

First Financial Bancorp. pays an annual dividend of $0.92 per share and has a dividend yield of 4.5%. Huntington Bancshares pays an annual dividend of $0.62 per share and has a dividend yield of 4.8%. First Financial Bancorp. pays 44.0% of its profits in the form of dividends. Huntington Bancshares pays 53.0% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Huntington Bancshares has increased its dividend for 11 consecutive years. Huntington Bancshares is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.

Benefits and evaluation

This table compares First Financial Bancorp’s revenue, earnings per share and market valuation. and Huntington Bancshares.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
First financial bank. $654.72 million 2.94 $205.16 million $2.09 9.75
Huntington Bancactions $6.08 billion 3.08 $1.30 billion $1.17 11.13

Huntington Bancshares has higher revenue and profit than First Financial Bancorp.. First Financial Bancorp. trades at a lower price-to-earnings ratio than Huntington Bancshares, indicating that it is currently the more affordable of the two stocks.

Analyst Notes

This is a summary of current ratings and target prices for First Financial Bancorp and Huntington Bancshares, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
First financial bank. 0 1 0 0 2.00
Huntington Bancactions 1 5 3 1 2.40

First Financial Bancorp currently has a consensus price target of $26.00, indicating a potential upside of 27.64%. Huntington Bancshares has a consensus price target of $17.71, indicating a potential upside of 36.05%. Given Huntington Bancshares’ higher consensus rating and higher likely upside, analysts clearly believe Huntington Bancshares is more favorable than First Financial Bancorp.

Insider and Institutional Ownership

74.1% of the shares of First Financial Bancorp. are held by institutional investors. By comparison, 79.3% of shares in Huntington Bancshares are held by institutional investors. 2.1% of the shares of First Financial Bancorp. are held by insiders of the company. By comparison, 0.7% of shares in Huntington Bancshares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers, and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares First Financial Bancorp’s net margins, return on equity, and return on assets. and Huntington Bancshares.

Net margins Return on equity return on assets
First financial bank. 30.78% 9.63% 1.33%
Huntington Bancactions 26.96% 12.19% 1.19%

Summary

Huntington Bancshares beat First Financial Bancorp on 13 out of 18 factors compared between the two stocks.

About First Financial Bancorp. (Get an assessment)

First Financial Bancorp. operates as a bank holding company for First Financial Bank which provides commercial banking and related services to individuals and businesses in Ohio, Indiana, Kentucky and Illinois. The Company accepts various deposit products, such as interest-bearing and non-interest-bearing accounts, term deposits and cash management services for commercial clients. It also offers real estate loans secured by residential property, such as one to four-family residential units or commercial property including owner-occupied real estate and/or investor income and consisting of apartments, shopping centers or office buildings; commercial and industrial loans for various purposes, including inventory, receivables and equipment; consumer loans including new and used vehicle loans, second mortgages on residential real estate and unsecured loans; and home equity lines of credit. In addition, the company provides commercial financing to the insurance industry, registered investment advisers, certified public accountants, indirect automobile finance companies and restaurant franchises. Additionally, it provides a range of trust and wealth management services; and equipment leasing and financing services. As of December 31, 2021, the company operated 139 full-service banking centers, 29 of which are leased facilities. It operates 62 banking centers in Ohio, three banking centers in Illinois, 62 banking centers in Indiana and 12 banking centers in Kentucky. First Financial Bancorp was founded in 1863 and is headquartered in Cincinnati, Ohio.

About Huntington Bancshares (Get an assessment)

Huntington Bancshares Incorporated operates as a bank holding company for Huntington National Bank which provides commercial, consumer and mortgage banking services in the United States. The Company operates through four segments: Personal and Commercial Banking; The Commercial Bank; Vehicle financing; 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, credit cards and personal and small business loans, as well as investment products. This segment also provides mortgage, insurance, interest rate risk protection, foreign exchange, automated teller machine and cash management services, as well as online, mobile and telephone banking. It serves consumers and small businesses. The Commercial Banking segment offers regional commercial banking solutions for middle market businesses, government and public sector entities and commercial real estate developers/REITs; and specialist banking solutions for healthcare, technology and telecommunications, franchise financing, sponsor financing and global services. It also provides asset financing services; capital raising solutions, sales and trading products and enterprise risk management; institutional banking services; and cash management services. The Vehicle Finance segment provides financing to consumers for the purchase of automobiles, light trucks, recreational vehicles and watercraft at franchise dealerships and other select dealerships, as well as to franchise dealerships for the acquisition of new and used inventory. The RBHPCG segment offers private banking, wealth and investment management and pension plan services. As of March 18, 2022, the company had approximately 1,000 branches in 11 states. Huntington Bancshares Incorporated was founded in 1866 and is headquartered in Columbus, Ohio.



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