Contrast between Limestone Bancorp (NASDAQ:LMST) and Huntington Bancshares (NASDAQ:HBAN)


Huntington Bancshares (NASDAQ:HBAN – Get Rating) and Limestone Bancorp (NASDAQ:LMST – Get Rating) are both finance companies, but which is the better stock? We’ll compare the two companies based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings, and institutional ownership.

Volatility and risk

Huntington Bancshares has a beta of 1.18, suggesting its stock price is 18% more volatile than the S&P 500. By comparison, Limestone Bancorp has a beta of 0.68, suggesting its stock price is 32% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of the current ratings and recommendations for Huntington Bancshares and Limestone Bancorp, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Huntington Bancactions 3 3 3 1 2.20
Limestone Bancorp 0 0 1 0 3.00

Huntington Bancshares currently has a consensus price target of $16.28, indicating a potential upside of 24.45%. Limestone Bancorp has a consensus price target of $23.00, indicating a potential upside of 16.04%. Given the likely higher upside of Huntington Bancshares, research analysts clearly believe that Huntington Bancshares is more favorable than Limestone Bancorp.

Dividends

Huntington Bancshares pays an annual dividend of $0.62 per share and has a dividend yield of 4.7%. Limestone Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 1.0%. Huntington Bancshares pays 53.0% of its profits as a dividend. Limestone Bancorp pays 10.0% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Huntington Bancshares has increased its dividend for 11 consecutive years. Huntington Bancshares is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.

Valuation and benefits

This table compares the revenue, earnings per share (EPS), and valuation of Huntington Bancshares and Limestone Bancorp.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Huntington Bancactions $6.08 billion 3.10 $1.30 billion $1.17 11.18
Limestone Bancorp $58.35 million 2.25 $14.91 million $2.00 9.91

Huntington Bancshares has higher revenue and profit than Limestone Bancorp. Limestone Bancorp trades 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 the net margins, return on equity and return on assets of Huntington Bancshares and Limestone Bancorp.

Net margins Return on equity return on assets
Huntington Bancactions 26.96% 12.19% 1.19%
Limestone Bancorp 25.92% 11.93% 1.11%

Insider and Institutional Ownership

79.3% of Huntington Bancshares shares are held by institutional investors. By comparison, 44.6% of Limestone Bancorp’s shares are held by institutional investors. 0.7% of Huntington Bancshares shares are held by insiders. By comparison, 15.9% of Limestone Bancorp’s shares are held by insiders. Strong institutional ownership indicates that large money managers, endowments, and hedge funds believe a stock will outperform the market over the long term.

Summary

Huntington Bancshares beats Limestone Bancorp on 14 of the 18 factors compared between the two stocks.

Huntington Bancshares Company Profile (Get a rating)

Huntington Bancshares Incorporated operates as a bank holding company for Huntington National Bank which provides commercial, consumer and mortgage banking services in the United States. The Company operates through four segments: Personal and Commercial Banking; The Commercial Bank; Vehicle financing; 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 personal and small business loans, as well as investment products. This segment also provides mortgage, insurance, interest rate risk protection, foreign exchange, automated teller machine and cash management services, as well as online, mobile and telephone banking. It serves consumers and small businesses. 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 specialist banking solutions for healthcare, technology and telecommunications, franchise financing, sponsor financing and global services. It also provides asset financing services; capital raising solutions, sales and trading products and enterprise risk management; institutional banking services; and cash management services. The Vehicle Finance segment provides financing to consumers for the purchase of automobiles, light trucks, recreational vehicles and watercraft at franchise dealerships and other select dealerships, as well as to franchise dealerships for the acquisition of new and used inventory. The RBHPCG segment offers private banking, wealth and investment management and pension 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.

Limestone Bancorp Company Profile (Get a rating)

Limestone Bancorp, Inc. operates as a bank holding company for Limestone Bank, Inc. which provides a range of personal and corporate banking products and services. The Company’s deposit products include savings, interest control and money market accounts, as well as fixed rate certificates with different maturities. It also provides commercial loans for the purchase of equipment, working capital and other commercial enterprise financing needs; and commercial real estate loans which include loans on properties occupied by borrowers and tenants, as well as construction and development loans secured by land under development or homes and commercial buildings under construction. Additionally, the company offers residential real estate loans; consumer loans; agricultural loans secured by livestock, crops and equipment; and other loans, including municipal loans, equity-secured loans and overdrafts. Additionally, it provides drive-thru banking, ATMs, personalized checks, credit and debit cards, electronic funds transfers through ACH services, domestic and foreign wire transfers, and loan and debit accounts. deposit ; and curbside banking, night deposit, internet and mobile banking, cash management, remote deposit, cash management and safe deposit box services. The company primarily serves communities and small and medium-sized businesses, the owners and employees of these businesses, and other executives and professionals. It operates 20 banking offices in 14 Kentucky counties. The company was formerly known as Porter Bancorp, Inc. and changed its name to Limestone Bancorp, Inc. in May 2018. Limestone Bancorp, Inc. was founded in 1902 and is headquartered in Louisville, Kentucky.



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