Financial Analysis: Huntington Bancshares (NASDAQ:HBAN) and Farmers National Banc (NASDAQ:FMNB)

Huntington Bancshares (NASDAQ:HBAN) and Farmers National Banc (NASDAQ:FMNB) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Dividends

Huntington Bancshares pays an annual dividend of $0.62 per share and has a dividend yield of 3.5%. Farmers National Banc pays an annual dividend of $0.68 per share and has a dividend yield of 4.7%. Huntington Bancshares pays out 45.9% of its earnings in the form of a dividend. Farmers National Banc pays out 50.7% 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.

Volatility and Risk

Huntington Bancshares has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Farmers National Banc has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Institutional and Insider Ownership

80.7% of Huntington Bancshares shares are held by institutional investors. Comparatively, 38.7% of Farmers National Banc shares are held by institutional investors. 0.9% of Huntington Bancshares shares are held by insiders. Comparatively, 3.9% of Farmers National Banc shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for Huntington Bancshares and Farmers National Banc, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huntington Bancshares	1	3	15	2	2.86
Farmers National Banc	0	1	1	0	2.50

Huntington Bancshares currently has a consensus price target of $18.79, indicating a potential upside of 6.04%. Farmers National Banc has a consensus price target of $15.50, indicating a potential upside of 6.16%. Given Farmers National Banc’s higher possible upside, analysts plainly believe Farmers National Banc is more favorable than Huntington Bancshares.

Valuation and Earnings

This table compares Huntington Bancshares and Farmers National Banc”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Huntington Bancshares	$11.96 billion	2.16	$1.94 billion	$1.35	13.13
Farmers National Banc	$269.45 million	2.04	$45.95 million	$1.34	10.90

Huntington Bancshares has higher revenue and earnings than Farmers National Banc. Farmers National Banc 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 Farmers National Banc’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Huntington Bancshares	17.36%	11.81%	1.06%
Farmers National Banc	18.19%	12.02%	0.99%

Summary

Huntington Bancshares beats Farmers National Banc on 12 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 Farmers National Banc

Farmers National Banc Corp. operates as a bank holding company for The Farmers National Bank of Canfield engages in the banking, trust, retirement consulting, insurance, and financial management businesses. It offers commercial and retail banking services, including checking, savings, and time deposit accounts; commercial, mortgage and installment, and home equity loans; home equity lines of credit, night depository, safe deposit box, money order, bank check, automated teller machine, Internet banking, travel card, E bond transaction, brokerage, and other services. The company also provides personal and corporate trust services in the areas of estate settlement, trust administration, employee benefit plans, and retirement services; property and casualty insurance products and services; and various insurance products through licensed representatives, as well as invests in municipal securities. The company was founded in 1887 and is headquartered in Canfield, Ohio.