Financial review: Huntington Bancshares (NASDAQ:HBAN) and American National Bankshares (NASDAQ:AMNB)

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Huntington Bench Shares (NASDAQ: HBANGet a rating) and American National Bankshares (NASDAQ: AMNBGet a rating) are both finance companies, but which stock is superior? We’ll compare the two companies based on earnings strength, analyst recommendations, profitability, institutional ownership, valuation, risk, and dividends.

Profitability

This table compares the net margins, return on equity and return on assets of Huntington Bancshares and American National Bankshares.

Net margins Return on equity return on assets
Huntington Bancactions 26.96% 12.19% 1.19%
US National Bank Stocks 36.26% 11.89% 1.25%

Risk and Volatility

Huntington Bancshares has a beta of 1.18, indicating its stock price is 18% more volatile than the S&P 500. In comparison, American National Bankshares has a beta of 1.04, indicating its stock price is 4 % more volatile than the S&P 500.

Insider and Institutional Ownership

79.3% of Huntington Bancshares shares are held by institutional investors. By comparison, 39.8% of American National Bankshares’ shares are held by institutional investors. 0.7% of the shares of Huntington Bancshares are held by insiders of the company. By comparison, 4.0% of the shares of American National Bankshares are held by insiders of the company. Strong institutional ownership indicates that endowments, hedge funds, and large fund managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Huntington Bancshares and American National Bankshares, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Huntington Bancactions 3 3 3 1 2.20
US National Bank Stocks 0 0 2 0 3.00

Huntington Bancshares currently has a consensus price target of $16.28, suggesting a potential upside of 36.33%. American National Bankshares has a consensus price target of $38.25, suggesting a potential upside of 11.87%. Given the likely higher upside of Huntington Bancshares, research analysts clearly believe that Huntington Bancshares is more favorable than American National Bankshares.

Valuation and benefits

This chart compares the gross revenue, earnings per share (EPS), and valuation of Huntington Bancshares and American National Bankshares.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Huntington Bancactions $6.08 billion 2.83 $1.30 billion $1.17 10.21
US National Bank Stocks $116.83 million 3.13 $43.53 million $3.82 8.95

Huntington Bancshares has higher revenue and profit than American National Bankshares. American National Bankshares trades 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 5.2%. American National Bankshares pays an annual dividend of $1.12 per share and has a dividend yield of 3.3%. Huntington Bancshares pays 53.0% of its profits as a dividend. American National Bankshares pays 29.3% 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 and American National Bankshares has increased its dividend for 1 consecutive year. Huntington Bancshares is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.

Summary

Huntington Bancshares beats American National Bankshares on 11 out of 18 factors compared between the two stocks.

Huntington Bancshares Company Profile (Get a rating)

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.

American National Bankshares Company Profile (Get a rating)

US National Bank stock logoAmerican National Bankshares Inc. operates as a bank holding company for American National Bank and Trust Company which provides financial products and services. The Company operates in two segments, Community Banking and Wealth Management. It accepts deposit products including checks, money market, savings, and term deposits from consumers and businesses. The Company’s lending products include commercial and residential real estate loans, small and medium business commercial loans, construction and land development loans, home equity loans, mortgage loans and the consumption. It also offers wealth management services, including estate planning, trust account administration and retail brokerage services; investment management services, such as purchasing stocks, fixed income securities and mutual fund investments for client accounts; online and telephone banking; and insurance services, and operates 37 ATMs. As of December 31, 2021, the company operated 26 banking offices in south-central Virginia and north-central North Carolina; and a loan origination office in Roanoke, Virginia. American National Bankshares Inc. was founded in 1909 and is based in Danville, Virginia.



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