Analyzing Nicolet Bankshares (NASDAQ:NCBS) and Huntington Bancshares (NASDAQ:HBAN)

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

Profitability

This table compares Huntington Bancshares and Nicolet Bankshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Huntington Bancshares 25.77% 14.23% 1.33%
Nicolet Bankshares 28.06% 11.63% 1.48%

Dividends

Huntington Bancshares pays an annual dividend of $0.56 per share and has a dividend yield of 4.2%. Nicolet Bankshares does not pay a dividend. Huntington Bancshares pays out 46.7% of its earnings in the form of a dividend. Huntington Bancshares has increased its dividend for 6 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Huntington Bancshares and Nicolet Bankshares, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Huntington Bancshares 2 6 2 0 2.00
Nicolet Bankshares 0 1 1 0 2.50

Huntington Bancshares currently has a consensus price target of $15.48, indicating a potential upside of 14.80%. Nicolet Bankshares has a consensus price target of $65.50, indicating a potential upside of 2.49%. Given Huntington Bancshares’ higher probable upside, equities research analysts plainly believe Huntington Bancshares is more favorable than Nicolet Bankshares.

Valuation and Earnings

This table compares Huntington Bancshares and Nicolet Bankshares’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Huntington Bancshares $5.27 billion 2.65 $1.39 billion $1.20 11.23
Nicolet Bankshares $165.05 million 3.66 $41.04 million $4.12 15.51

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

Institutional & Insider Ownership

75.5% of Huntington Bancshares shares are owned by institutional investors. Comparatively, 36.2% of Nicolet Bankshares shares are owned by institutional investors. 1.2% of Huntington Bancshares shares are owned by insiders. Comparatively, 17.4% of Nicolet Bankshares 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

Huntington Bancshares has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Nicolet Bankshares has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Summary

Huntington Bancshares beats Nicolet Bankshares on 9 of the 17 factors compared between the two stocks.

Huntington Bancshares Company Profile

Huntington Bancshares Incorporated operates as a holding company for The Huntington National Bank that provides commercial, small business, consumer, and mortgage banking services. The company operates through four business segments: Consumer and Business Banking, Commercial Banking, Vehicle Finance, 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, consumer loans, mortgage loans, credit cards, and small business loans, as well as investment products. It also provides insurance, interest rate risk protection, foreign exchange, and treasury management services, as well as online, mobile, and telephone banking services. The Commercial Banking segment offers banking solutions and asset finance services; corporate risk management services; institutional sales, trading, and underwriting services; institutional corporate banking services; treasury management services; and other financing solutions, as well as lends real estate developers, REITs, and other customers. The Vehicle Finance segment provides financing to consumers for the purchase of automobiles, light-duty trucks, recreational vehicles, and marine craft at franchised and other select dealerships, as well as to franchised dealerships for the acquisition of new and used inventory. The RBHPCG segment provides deposits, lending, banking, wealth management, investment and portfolio management, fiduciary administration, trust, retirement plan, and institutional and mutual fund custody services. As of December 31, 2018, the company operated through 944 branches located in Ohio, Michigan, Pennsylvania, Indiana, Illinois, Wisconsin, West Virginia, and Kentucky; and 10 private client group offices. Huntington Bancshares Incorporated was founded in 1866 and is headquartered in Columbus, Ohio.

Nicolet Bankshares Company Profile

Nicolet Bankshares, Inc. operates as the holding company for Nicolet National Bank that provides commercial and retail banking services for businesses and individuals. The company accepts checking, savings, and money market accounts; various certificates of deposit; and individual retirement accounts. It also offers commercial loans, including commercial, industrial, and business loans and lines of credit; owner-occupied commercial real estate loans; agricultural (AG) production and AG real estate loans; commercial real estate investment real estate loans; construction and land development loans; residential real estate loans, such as residential first lien mortgages, junior lien mortgages, home equity loans, lines of credit, and residential construction loans; and consumer loans. In addition, the company provides cash management, international banking, personal brokerage, safe deposit boxes, and trust and fiduciary services, as well as wealth management and retirement plan services. Further, it offers mortgage refinancing; online services, such as commercial, retail, and trust online banking; automated bill payment, mobile banking deposits and account access, remote deposit capture, and telephone banking services; and other services consisting of wire transfers, debit cards, credit cards, pre-paid gift cards, direct deposits, and official bank checks. Additionally, the company provides investment strategy and transactional services to financial institutions. As of December 31, 2018, it operated 38 branches located in northeast and central Wisconsin, as well as in Menominee, Michigan. The company was formerly known as Green Bay Financial Corporation and changed its name to Nicolet Bankshares, Inc. in March 2002. Nicolet Bankshares, Inc. was founded in 2000 and is headquartered in Green Bay, Wisconsin.

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