Huntington Bancshares (NASDAQ:HBAN) & MainStreet Bank (NASDAQ:MNSB) Critical Comparison

MainStreet Bank (NASDAQ:MNSB) and Huntington Bancshares (NASDAQ:HBAN) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Dividends

MainStreet Bank pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. Huntington Bancshares pays an annual dividend of $0.62 per share and has a dividend yield of 3.9%. MainStreet Bank pays out 20.5% of its earnings in the form of a dividend. Huntington Bancshares pays out 51.2% 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for MainStreet Bank and Huntington Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MainStreet Bank	0	1	1	0	2.50
Huntington Bancshares	2	8	12	1	2.52

Huntington Bancshares has a consensus target price of $18.89, indicating a potential upside of 19.57%. Given Huntington Bancshares’ stronger consensus rating and higher possible upside, analysts clearly believe Huntington Bancshares is more favorable than MainStreet Bank.

Profitability

This table compares MainStreet Bank and Huntington Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MainStreet Bank	12.51%	8.72%	0.74%
Huntington Bancshares	16.28%	10.93%	1.12%

Earnings and Valuation

This table compares MainStreet Bank and Huntington Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MainStreet Bank	$135.62 million	1.13	$15.61 million	$1.95	11.00
Huntington Bancshares	$12.48 billion	2.56	$2.21 billion	$1.21	13.05

Huntington Bancshares has higher revenue and earnings than MainStreet Bank. MainStreet Bank 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

52.3% of MainStreet Bank shares are held by institutional investors. Comparatively, 80.7% of Huntington Bancshares shares are held by institutional investors. 10.2% of MainStreet Bank shares are held by company insiders. Comparatively, 0.7% of Huntington Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

MainStreet Bank has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Huntington Bancshares has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.

Summary

Huntington Bancshares beats MainStreet Bank on 14 of the 17 factors compared between the two stocks.

About MainStreet Bank

MainStreet Bank is a community-focused commercial bank headquartered in Fairfax, Virginia. It operates as a subsidiary of MainStreet Bancshares, Inc. and serves businesses, organizations and individuals in the Washington, D.C., metropolitan area, including Northern Virginia and Maryland. The bank offers business and personal deposit accounts, commercial lending, residential mortgage lending and treasury management services. Its lending includes commercial real estate and business loans, alongside services such as digital banking and cash management.

About Huntington Bancshares

Huntington Bancshares Incorporated is a regional bank holding company headquartered in Columbus, Ohio. Its principal subsidiary, The Huntington National Bank, provides consumer and commercial banking services to individuals, businesses, and institutions. The company traces its roots to 1866, when P.W. Huntington & Company opened in Columbus. Huntington’s offerings include checking and savings accounts, credit cards, mortgages, auto loans, business lending, treasury management, wealth management, and investment services.