Huntington Bancshares (NASDAQ:HBAN) & Comerica (NYSE:CMA) Critical Comparison

Huntington Bancshares (NASDAQ:HBANGet Rating) and Comerica (NYSE:CMAGet Rating) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for Huntington Bancshares and Comerica, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Huntington Bancshares 3 6 4 1 2.21
Comerica 1 5 11 0 2.59

Huntington Bancshares presently has a consensus price target of $15.11, suggesting a potential upside of 13.42%. Comerica has a consensus price target of $95.45, suggesting a potential upside of 17.78%. Given Comerica’s stronger consensus rating and higher possible upside, analysts clearly believe Comerica is more favorable than Huntington Bancshares.

Dividends

Huntington Bancshares pays an annual dividend of $0.62 per share and has a dividend yield of 4.7%. Comerica pays an annual dividend of $2.72 per share and has a dividend yield of 3.4%. Huntington Bancshares pays out 55.4% of its earnings in the form of a dividend. Comerica pays out 39.7% 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. 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.

Risk & Volatility

Huntington Bancshares has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Comerica has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.

Institutional & Insider Ownership

79.8% of Huntington Bancshares shares are owned by institutional investors. Comparatively, 82.6% of Comerica shares are owned by institutional investors. 0.7% of Huntington Bancshares shares are owned by insiders. Comparatively, 0.8% of Comerica shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Huntington Bancshares and Comerica’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Huntington Bancshares $6.08 billion 3.16 $1.30 billion $1.12 11.89
Comerica $3.02 billion 3.51 $1.17 billion $6.85 11.83

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

Net Margins Return on Equity Return on Assets
Huntington Bancshares 25.58% 13.11% 1.24%
Comerica 30.42% 13.63% 1.03%

Summary

Comerica beats Huntington Bancshares on 11 of the 18 factors compared between the two stocks.

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.

About Comerica

(Get Rating)

Comerica Incorporated, through its subsidiaries, provides various financial products and services. It operates through Commercial Bank, Retail Bank, Wealth Management, and Finance segments. The Commercial Bank segment offers various products and services, including commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, foreign exchange management services, and loan syndication services for small and middle market businesses, multinational corporations, and governmental entities. The Retail Bank segment provides personal financial services, such as consumer lending, consumer deposit gathering, and mortgage loan origination. This segment also offers various consumer products that include deposit accounts, installment loans, credit cards, student loans, home equity lines of credit, and residential mortgage loans, as well as commercial products and services to micro-businesses. The Wealth Management segment provides products and services comprising fiduciary, private banking, retirement, investment management and advisory, and investment banking and brokerage services. This segment also sells annuity products, as well as life, disability, and long-term care insurance products. The Finance segment engages in the securities portfolio, and asset and liability management activities. It operates in Texas, California, Michigan, Arizona, Florida, Canada, and Mexico. The company was formerly known as DETROITBANK Corporation and changed its name to Comerica Incorporated in July 1982. Comerica Incorporated was founded in 1849 and is headquartered in Dallas, Texas.

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