Stock comparison of Sturgis Bancorp (OTCMKTS:STBI) and Huntington Bancshares (NASDAQ:HBAN)


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

Insider and Institutional Ownership

79.3% of Huntington Bancshares shares are held by institutional investors. 16.0% of Sturgis Bancorp shares are held by insiders. By comparison, 0.7% of shares in Huntington Bancshares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds, and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Sturgis Bancorp and Huntington Bancshares, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Sturgis Bancorp 0 0 0 0 N / A
Huntington Bancactions 3 3 3 1 2.20

Huntington Bancshares has a consensus target price of $16.28, suggesting a potential upside of 19.78%. Given the likely higher upside of Huntington Bancshares, analysts clearly believe Huntington Bancshares is more favorable than Sturgis Bancorp.

Valuation and benefits

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

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Sturgis Bancorp $33.38 million 1.40 $6.34 million $2.91 7.56
Huntington Bancactions $6.08 billion 3.22 $1.30 billion $1.17 11.62

Huntington Bancshares has higher revenues and profits than Sturgis Bancorp. Sturgis Bancorp trades at a lower price-to-earnings ratio than Huntington Bancshares, indicating that it is currently the more affordable of the two stocks.

Dividends

Sturgis Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 3.1%. Huntington Bancshares pays an annual dividend of $0.62 per share and has a dividend yield of 4.6%. Sturgis Bancorp pays 23.4% of its profits as a dividend. Huntington Bancshares pays 53.0% 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.

Profitability

This table compares the net margins, return on equity and return on assets of Sturgis Bancorp and Huntington Bancshares.

Net margins Return on equity return on assets
Sturgis Bancorp 18.57% N / A N / A
Huntington Bancactions 26.96% 12.19% 1.19%

Risk and Volatility

Sturgis Bancorp has a beta of 0.53, suggesting its stock price is 47% less volatile than the S&P 500. In comparison, Huntington Bancshares has a beta of 1.18, suggesting its stock price is 18% more volatile than the S&P 500.

Summary

Huntington Bancshares beats Sturgis Bancorp on 14 out of 17 factors compared between the two stocks.

Sturgis Bancorp Company Profile (Get a rating)

Sturgis Bancorp, Inc. operates as a bank holding company for Sturgis Bank & Trust Company which provides banking products and services in Michigan, USA. The company offers checking, savings and health savings accounts, as well as money market accounts; and Certificates of Deposit and Individual Retirement Accounts. It also offers mortgage, auto, secured savings, personal, equipment and machinery, government-backed and commercial real estate loans, as well as home equity lines of credit and business lines of credit; and credit cards. In addition, the Company offers other personal banking services, such as private banking, cashiers checks, wire transfers, foreign drafts and foreign currencies, overdraft protection, overnight deposit and notary, as well as safe deposit boxes and residential mortgages. Additionally, it provides direct deposit, remote deposit capture, Visa check card, and check replenishment services; and investment and financial advisory services, as well as commercial and consumer insurance and title insurance products. In addition, the Company offers real estate and asset management services, such as real estate settlements, trust administration, record keeping, investment management and custodial services; and online and mobile banking, bill payment and mobile wallet services. It operates through 14 banking facilities; and 4 full-service stand-alone ATMs located in 11 Michigan communities. Sturgis Bancorp, Inc. was founded in 1905 and is based in Sturgis, Michigan.

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.



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