MidWestOne Financial Group (NASDAQ:MOFG) & Huntington Bancshares (NASDAQ:HBAN) Head-To-Head Review

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

Volatility and Risk

Huntington Bancshares has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, MidWestOne Financial Group has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Dividends

Huntington Bancshares pays an annual dividend of $0.62 per share and has a dividend yield of 3.8%. MidWestOne Financial Group pays an annual dividend of $0.97 per share and has a dividend yield of 2.0%. Huntington Bancshares pays out 47.7% of its earnings in the form of a dividend. MidWestOne Financial Group pays out 34.5% 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 Recommendations

This is a summary of recent ratings for Huntington Bancshares and MidWestOne Financial Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huntington Bancshares	1	4	14	1	2.75
MidWestOne Financial Group	0	4	1	0	2.20

Huntington Bancshares presently has a consensus target price of $20.05, suggesting a potential upside of 23.84%. MidWestOne Financial Group has a consensus target price of $40.50, suggesting a potential downside of 17.87%. Given Huntington Bancshares’ stronger consensus rating and higher possible upside, analysts plainly believe Huntington Bancshares is more favorable than MidWestOne Financial Group.

Earnings & Valuation

This table compares Huntington Bancshares and MidWestOne Financial Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Huntington Bancshares	$12.49 billion	2.63	$2.21 billion	$1.30	12.45
MidWestOne Financial Group	$238.84 million	4.26	-$60.29 million	$2.81	17.55

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

Profitability

This table compares Huntington Bancshares and MidWestOne Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Huntington Bancshares	16.63%	11.42%	1.11%
MidWestOne Financial Group	16.66%	10.22%	0.96%

Insider & Institutional Ownership

80.7% of Huntington Bancshares shares are owned by institutional investors. Comparatively, 65.4% of MidWestOne Financial Group shares are owned by institutional investors. 0.7% of Huntington Bancshares shares are owned by company insiders. Comparatively, 2.5% of MidWestOne Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Huntington Bancshares beats MidWestOne Financial Group on 10 of the 17 factors compared between the two stocks.

About Huntington Bancshares

Huntington Bancshares Incorporated operates as the bank holding company for The Huntington National Bank that provides commercial, consumer, and mortgage banking services in the United States. The company offers financial products and services to consumer and business customers, including deposits, lending, payments, mortgage banking, dealer financing, investment management, trust, brokerage, insurance, and other financial products and services. It also provides 24-hour grace, asterisk-free checking, money scout, $50 safety zone, standby cash, early pay, instant access, savings goal getter, and Huntington heads up; digitally powered consumer and business financial solutions to consumer lending, regional banking, branch banking, and wealth management customers; direct and indirect consumer loans, as well as dealer finance loans and deposits; and private banking, wealth management and legacy planning through investment and portfolio management, fiduciary administration and trust, institutional custody, and full-service retail brokerage investment services. The company offers equipment financing, asset-based lending, distribution finance, structured lending, and municipal financing solutions, as well as Huntington ChoicePay. In addition, it offers lending, liquidity, treasury management and other payment services, and capital markets; government and non-profits, healthcare, technology and telecommunications, franchises, financial sponsors, and global services; and corporate risk management, institutional sales and trading, debt and equity issuance, and additional advisory services. The company offers its products through a network of channels, including branches and ATMs, online and mobile banking, and through customer call centers to customers in middle market banking, corporate, specialty, and government banking, asset finance, commercial real estate banking, and capital markets. The company was founded in 1866 and is headquartered in Columbus, Ohio.

About MidWestOne Financial Group

MidWestOne Financial Group, Inc. operates as the bank holding company for MidWestOne Bank that provides commercial and retail banking products and services to individuals, businesses, governmental units, and institutional customers. It offers range of deposit products, including noninterest bearing and interest bearing demand deposits, savings, money market, and time deposits accounts. The company also provides commercial, real estate, agricultural, credit card, and consumer loans; and financing arrangements, such as brokered deposits, term debt, subordinated debt, and equity. In addition, it offers trust and investment services comprising administering estates, trusts, and conservatorships; property and farm management, investment advisory, retail securities brokerage, financial planning, and custodial services; and licensed brokers services. Further, the company provides online and mobile banking, debit cards, automated teller machines, and safe deposit boxes. MidWestOne Financial Group, Inc. was founded in 1934 and is headquartered in Iowa City, Iowa.