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

First Financial Bancorp. (NASDAQ:FFBCGet Rating) and Huntington Bancshares (NASDAQ:HBANGet Rating) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Volatility & Risk

First Financial Bancorp. has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Huntington Bancshares has a beta of 1.18, indicating that its share 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 out 44.0% of its earnings in the form of a dividend. Huntington Bancshares pays out 53.0% 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. Huntington Bancshares has increased its dividend for 11 consecutive years. Huntington Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares First Financial Bancorp. and Huntington Bancshares’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Financial Bancorp. $654.72 million 2.94 $205.16 million $2.09 9.75
Huntington Bancshares $6.08 billion 3.08 $1.30 billion $1.17 11.13

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

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Financial Bancorp. 0 1 0 0 2.00
Huntington Bancshares 1 5 3 1 2.40

First Financial Bancorp. presently 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’ stronger consensus rating and higher probable upside, analysts clearly believe Huntington Bancshares is more favorable than First Financial Bancorp..

Insider and Institutional Ownership

74.1% of First Financial Bancorp. shares are held by institutional investors. Comparatively, 79.3% of Huntington Bancshares shares are held by institutional investors. 2.1% of First Financial Bancorp. shares are held by company insiders. Comparatively, 0.7% of Huntington Bancshares shares 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. and Huntington Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Financial Bancorp. 30.78% 9.63% 1.33%
Huntington Bancshares 26.96% 12.19% 1.19%

Summary

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

About First Financial Bancorp. (Get Rating)

First Financial Bancorp. operates as the bank holding company for First Financial Bank that 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 noninterest-bearing accounts, time deposits, and cash management services for commercial customers. It also provides real estate loans secured by residential property, such as one to four family residential housing units or commercial property comprising owner-occupied and/or investor income producing real estate consisting of apartments, shopping centers, or office buildings; commercial and industrial loans for various purposes, including inventory, receivables, and equipment; consumer loans comprising new and used vehicle loans, second mortgages on residential real estate, and unsecured loans; and home equity lines of credit. In addition, the company offers commercial financing to the insurance industry, registered investment advisors, certified public accountants, indirect auto finance companies, and restaurant franchisees. Further, it provides a range of trust and wealth management services; and lease and equipment 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 Rating)

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 operates through four segments: Consumer and Business Banking; Commercial Banking; Vehicle Finance; 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 consumer and small business loans, as well as investment products. This segment also provides mortgages, insurance, interest rate risk protection, foreign exchange, automated teller machine, and treasury management services, as well as online, mobile, and telephone banking services. It serves consumer and small business customers. 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 specialty banking solutions for healthcare, technology and telecommunications, franchise finance, sponsor finance, and global services industries. It also provides asset finance services; capital raising solutions, sales and trading, and corporate risk management products; institutional banking services; and treasury management services. The Vehicle Finance segment provides financing to consumers for the purchase of automobiles, light-duty trucks, recreational vehicles, and marine craft at franchised and other select dealerships, as well as to franchised dealerships for the acquisition of new and used inventory. The RBHPCG segment offers private banking, wealth and investment management, and retirement 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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