CBTX (NASDAQ:CBTX – Get Rating) and Huntington Bancshares (NASDAQ:HBAN – Get Rating) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.
This is a summary of current ratings and target prices for CBTX and Huntington Bancshares, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Valuation & Earnings
This table compares CBTX and Huntington Bancshares’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CBTX||$148.36 million||4.77||$35.60 million||$1.46||19.71|
|Huntington Bancshares||$6.08 billion||3.17||$1.30 billion||$1.36||9.82|
Huntington Bancshares has higher revenue and earnings than CBTX. Huntington Bancshares is trading at a lower price-to-earnings ratio than CBTX, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
38.9% of CBTX shares are owned by institutional investors. Comparatively, 78.3% of Huntington Bancshares shares are owned by institutional investors. 26.0% of CBTX shares are owned by insiders. Comparatively, 0.7% of Huntington Bancshares shares are owned 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.
Risk & Volatility
CBTX has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Huntington Bancshares has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.
CBTX pays an annual dividend of $0.52 per share and has a dividend yield of 1.8%. Huntington Bancshares pays an annual dividend of $0.62 per share and has a dividend yield of 4.6%. CBTX pays out 35.6% of its earnings in the form of a dividend. Huntington Bancshares pays out 45.6% 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. CBTX has raised its dividend for 1 consecutive years and Huntington Bancshares has raised 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.
This table compares CBTX and Huntington Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Huntington Bancshares beats CBTX on 12 of the 17 factors compared between the two stocks.
CBTX Company Profile (Get Rating)
CBTX, Inc. operates as the bank holding company for CommunityBank of Texas, National Association that provides commercial banking products and services to small and mid-sized businesses, and professionals in the United States. The company offers demand, money market, savings, and time deposit accounts, as well as certificates of deposit; commercial and industrial, commercial real estate, construction and development, 1-4 family residential mortgage, multi-family residential, consumer, and agricultural loans; and treasury and online banking services. It operates through 34 banking locations, including 18 branches in Houston; 15 branches in Beaumont; and one branch in Dallas. The company was formerly known as CBFH, Inc. and changed its name to CBTX, Inc. in September 2017. CBTX, Inc. was incorporated in 2007 and is headquartered in Beaumont, Texas.
Huntington Bancshares Company Profile (Get Rating)
Huntington Bancshares, Inc. operates as a bank holding company. It 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, other financial products and services. The firm operates through the following segments: Consumer & Business Banking, Commercial Banking, Commercial Real Estate & Vehicle Finance, Regional Banking & The Huntington Private Client Group, and Home Lending. The Consumer & Business Banking segment provides financial products and services to consumer and small business customers including but not limited to checking accounts, savings accounts, money market accounts, certificates of deposit, investments, consumer loans, credit cards and small business loans. The Commercial Banking segment provides products and services to the middle market, large corporate, and government public sector customers located primarily within its geographic footprint. The segment is divided into following business units: Middle Market, Large Corporate, Specialty Banking, Asset Finance, Capital Markets, Treasu
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