Huntington Bancshares (NASDAQ:HBAN) versus UMB Financial (NASDAQ:UMBF) Head-To-Head Analysis

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

Earnings and Valuation

This table compares Huntington Bancshares and UMB Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Huntington Bancshares	$10.84 billion	2.26	$1.95 billion	$1.04	16.19
UMB Financial	$2.38 billion	2.41	$350.02 million	$8.00	14.70

Huntington Bancshares has higher revenue and earnings than UMB Financial. UMB Financial 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 UMB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Huntington Bancshares	14.19%	10.72%	0.95%
UMB Financial	14.44%	13.80%	0.99%

Institutional and Insider Ownership

80.7% of Huntington Bancshares shares are owned by institutional investors. Comparatively, 87.8% of UMB Financial shares are owned by institutional investors. 0.9% of Huntington Bancshares shares are owned by company insiders. Comparatively, 8.9% of UMB Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Huntington Bancshares has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, UMB Financial has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Huntington Bancshares and UMB Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huntington Bancshares	1	5	13	0	2.63
UMB Financial	0	2	5	1	2.88

Huntington Bancshares currently has a consensus target price of $17.76, indicating a potential upside of 5.49%. UMB Financial has a consensus target price of $124.00, indicating a potential upside of 5.42%. Given Huntington Bancshares’ higher possible upside, equities research analysts clearly believe Huntington Bancshares is more favorable than UMB Financial.

Dividends

Huntington Bancshares pays an annual dividend of $0.62 per share and has a dividend yield of 3.7%. UMB Financial pays an annual dividend of $1.60 per share and has a dividend yield of 1.4%. Huntington Bancshares pays out 59.6% of its earnings in the form of a dividend. UMB Financial pays out 20.0% 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. UMB Financial has increased its dividend for 32 consecutive years.

Summary

UMB Financial beats Huntington Bancshares on 11 of the 18 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 UMB Financial

UMB Financial Corporation operates as the bank holding company that provides banking services and asset servicing in the United States and internationally. The Commercial Banking segment provides commercial loans and credit card; commercial real estate financing; letters of credit; loan syndication, and consultative service; various business solutions including asset-based lending, mezzanine debt, and minority equity investment; and treasury management service, such as depository service, account reconciliation, cash management tool, accounts payable and receivable solution, electronic fund transfer and automated payment, controlled disbursement, lockbox service, and remote deposit capture service. The Institutional Banking segment offers fund, asset management, and healthcare service to institutional clients; and fund administration and accounting, investor service and transfer agency, mutual fund service, alternative investment service, fixed income sale, trading and underwriting, and corporate trust and escrow service, as well as institutional custody service. This segment also provides healthcare payment solution includes custodial service for health saving accounts and private label, multipurpose debit cards to insurance carriers, third-party administrator, software companies, employers, and financial institutions. The Personal Banking segment offers deposit account, retail credit card, private banking, installment loan, home equity line of credit, residential mortgage, as well as internet banking, ATM network, private banking, brokerage and insurance service, and investment advisory, custody, and trust services. It operates through a network of branches and offices. The company was founded in 1913 and is headquartered in Kansas City, Missouri.