Contrasting CVB Financial (CVBF) & Huntington Bancshares (HBAN)
CVB Financial (NASDAQ: CVBF) and Huntington Bancshares (NASDAQ:HBAN) are both mid-cap financials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.
Volatility and Risk
CVB Financial has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, Huntington Bancshares has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.
69.4% of CVB Financial shares are owned by institutional investors. Comparatively, 73.7% of Huntington Bancshares shares are owned by institutional investors. 7.0% of CVB Financial shares are owned by insiders. Comparatively, 1.3% of Huntington Bancshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares CVB Financial and Huntington Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares CVB Financial and Huntington Bancshares’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CVB Financial||$300.60 million||8.77||$101.42 million||$1.04||23.01|
|Huntington Bancshares||$3.78 billion||4.43||$711.82 million||$0.83||18.69|
Huntington Bancshares has higher revenue and earnings than CVB Financial. Huntington Bancshares is trading at a lower price-to-earnings ratio than CVB Financial, indicating that it is currently the more affordable of the two stocks.
CVB Financial pays an annual dividend of $0.56 per share and has a dividend yield of 2.3%. Huntington Bancshares pays an annual dividend of $0.32 per share and has a dividend yield of 2.1%. CVB Financial pays out 53.8% of its earnings in the form of a dividend. Huntington Bancshares pays out 38.6% 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.
This is a summary of current recommendations and price targets for CVB Financial and Huntington Bancshares, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CVB Financial presently has a consensus price target of $22.60, indicating a potential downside of 5.56%. Huntington Bancshares has a consensus price target of $16.27, indicating a potential upside of 4.87%. Given Huntington Bancshares’ stronger consensus rating and higher probable upside, analysts plainly believe Huntington Bancshares is more favorable than CVB Financial.
About CVB Financial
CVB Financial Corp. (CVB) is the bank holding company for Citizens Business Bank (the Bank). The Bank operates through two segments: Business Financial and Commercial Banking Centers (Centers), and Other Operations. The Company’s administrative and other smaller operating departments are combined into the Other segment. As of December 31, 2016, there were 42 Business Financial Centers and eight Commercial Banking Centers located in the Inland Empire, Los Angeles County, Orange County, San Diego County, Ventura County, Santa Barbara County, and the Central Valley area of California. Its trust offices are located in Ontario, Newport Beach and Pasadena. These offices serve as sales offices for the Bank’s wealth management, trust and investment products. It also offers specialized services designed for commercial customers. These services include cash management systems for monitoring cash flow, a credit card program for merchants, courier pick-up and delivery, and payroll services.
About Huntington Bancshares
Huntington Bancshares Incorporated (Huntington) is a bank holding company. Through its subsidiaries, including its bank subsidiary, The Huntington National Bank (the Bank), the Company provides commercial and consumer banking services, mortgage banking services, automobile financing, recreational vehicle and marine financing, equipment leasing, investment management, trust services, brokerage services, insurance programs, and other financial products and services. Its segments include Consumer and Business Banking, Commercial Banking, Commercial Real Estate and Vehicle Finance, Regional Banking and The Huntington Private Client Group, Home Lending and Treasury/Other. The Bank offers commercial and consumer loans. Its consumer loans include automobile, home equity, residential mortgage, and recreational vehicle (RV) and marine finance loans. It offers demand deposits-noninterest-bearing, demand deposits-interest-bearing, money market deposits, and savings and other domestic deposits.
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