Head-To-Head Contrast: Huntington Bancshares (NASDAQ:HBAN) and 1st Source (NASDAQ:SRCE)

Huntington Bancshares (NASDAQ:HBAN) and 1st Source (NASDAQ:SRCE) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Valuation & Earnings

This table compares Huntington Bancshares and 1st Source”s 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	2.07	$1.94 billion	$1.31	12.96
1st Source	$574.21 million	2.74	$132.62 million	$5.69	11.25

Huntington Bancshares has higher revenue and earnings than 1st Source. 1st Source is trading at a lower price-to-earnings ratio than Huntington Bancshares, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

80.7% of Huntington Bancshares shares are held by institutional investors. Comparatively, 74.5% of 1st Source shares are held by institutional investors. 0.9% of Huntington Bancshares shares are held by company insiders. Comparatively, 19.6% of 1st Source shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Huntington Bancshares has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, 1st Source has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Dividends

Huntington Bancshares pays an annual dividend of $0.62 per share and has a dividend yield of 3.7%. 1st Source pays an annual dividend of $1.52 per share and has a dividend yield of 2.4%. Huntington Bancshares pays out 47.3% of its earnings in the form of a dividend. 1st Source pays out 26.7% 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. 1st Source has raised its dividend for 38 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations for Huntington Bancshares and 1st Source, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huntington Bancshares	1	3	17	2	2.87
1st Source	0	1	1	0	2.50

Huntington Bancshares currently has a consensus target price of $18.48, indicating a potential upside of 8.80%. 1st Source has a consensus target price of $72.00, indicating a potential upside of 12.45%. Given 1st Source’s higher probable upside, analysts plainly believe 1st Source is more favorable than Huntington Bancshares.

Profitability

This table compares Huntington Bancshares and 1st Source’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Huntington Bancshares	16.94%	11.44%	1.01%
1st Source	24.17%	12.26%	1.62%

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 1st Source

1st Source Corporation operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and wealth advisory services, and insurance products to individual and business clients. Its consumer banking services include checking and savings accounts; certificates of deposit; individual retirement accounts; online and mobile banking products; consumer loans, real estate mortgage loans, and home equity lines of credit; and financial planning, financial literacy, and other consultative services, as well as debit and credit cards. The company also offers commercial, small business, agricultural, and real estate loans for general corporate purposes, including financing for industrial and commercial properties, equipment, inventories, accounts receivables, and renewable energy and acquisition financing; and commercial leasing, treasury management, and retirement planning services. In addition, it provides trust, investment, agency, and custodial services comprising administration of estates and personal trusts, as well as management of investment accounts for individuals, employee benefit plans, and charitable foundations. Further, the company offers equipment loan and lease products for construction equipment, new and pre-owned aircraft, auto and light trucks, and medium and heavy duty trucks; and finances construction equipment, aircrafts, medium and heavy duty trucks, step vans, vocational work trucks, motor coaches, shuttle buses, funeral cars, automobiles, and other equipment. Additionally, it provides corporate and personal property, casualty, and individual and group health and life insurance products and services. 1st Source Corporation was founded in 1863 and is headquartered in South Bend, Indiana.