Head-To-Head Comparison: Huntington Bancshares (NASDAQ:HBAN) & Fannie Mae (OTCMKTS:FNMA)

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

Valuation & Earnings

This table compares Huntington Bancshares and Fannie Mae”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Huntington Bancshares	$12.48 billion	2.54	$2.21 billion	$1.29	12.16
Fannie Mae	$159.17 billion	0.04	$14.36 billion	$0.04	121.50

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

Profitability

This table compares Huntington Bancshares and Fannie Mae’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Huntington Bancshares	16.64%	11.19%	1.12%
Fannie Mae	4.59%	-76.66%	0.51%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Huntington Bancshares and Fannie Mae, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huntington Bancshares	1	7	14	1	2.65
Fannie Mae	1	4	0	1	2.17

Huntington Bancshares currently has a consensus price target of $20.11, indicating a potential upside of 28.26%. Fannie Mae has a consensus price target of $10.70, indicating a potential upside of 120.16%. Given Fannie Mae’s higher possible upside, analysts plainly believe Fannie Mae is more favorable than Huntington Bancshares.

Insider & Institutional Ownership

80.7% of Huntington Bancshares shares are owned by institutional investors. Comparatively, 0.0% of Fannie Mae shares are owned by institutional investors. 0.7% of Huntington Bancshares shares are owned by company insiders. Comparatively, 1.0% of Fannie Mae shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Huntington Bancshares has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Fannie Mae has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.

Summary

Huntington Bancshares beats Fannie Mae on 8 of the 14 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 Fannie Mae

Federal National Mortgage Association provides financing solutions for mortgages in the United States. It operates through two segments, Single-Family and Multifamily. The Single-Family segment securitizes and purchases single-family fixed-rate or adjustable-rate, first-lien mortgage loans, or mortgage-related securities backed by these loans; and loans that are insured by Federal Housing Administration, loans guaranteed by the Department of Veterans Affairs and Rural Development Housing and Community Facilities Program of the U.S. Department of Agriculture, manufactured housing mortgage loans, and other mortgage-related securities. The Multifamily segment securitizes multifamily mortgage loans into Fannie Mae mortgage backed securities (MBS); purchases multifamily mortgage loans; and provides credit enhancement for bonds issued by state and local housing finance authorities to finance multifamily housing. This segment also issues structured MBS backed by Fannie Mae multifamily MBS; buys and sells multifamily agency mortgage-backed securities; and invests in low-income housing tax credit multifamily projects. Federal National Mortgage Association was founded in 1938 and is based in Washington, the District of Columbia.