Head-to-head review between Hancock Whitney (NASDAQ:HWC) and Citizens Financial Group (NYSE:CFG)


Hancock Whitney (NASDAQ:HWC – Get Rating) and Citizens Financial Group (NYSE:CFG – Get Rating) are both finance companies, but which is the best investment? We’ll compare the two companies based on earnings strength, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Insider and Institutional Ownership

78.4% of Hancock Whitney shares are held by institutional investors. By comparison, 94.8% of Citizens Financial Group shares are held by institutional investors. 1.0% of Hancock Whitney shares are held by insiders. By comparison, 0.5% of Citizens Financial Group shares are held by insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock is poised for long-term growth.

Volatility and risk

Hancock Whitney has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. By comparison, Citizens Financial Group has a beta of 1.45, suggesting that its stock price stock is 45% more volatile than the S&P 500.

Dividends

Hancock Whitney pays an annual dividend of $1.08 per share and has a dividend yield of 2.3%. Citizens Financial Group pays an annual dividend of $1.56 per share and has a dividend yield of 4.1%. Hancock Whitney pays 18.7% of its earnings as a dividend. Citizens Financial Group pays 39.5% 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. Citizens Financial Group has increased its dividend for 1 consecutive year. Citizens Financial Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Notes

This is a breakdown of recent recommendations for Hancock Whitney and Citizens Financial Group, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Hancock Whitney 0 1 3 1 3.00
Citizens Financial Group 1 4 8 0 2.54

Hancock Whitney currently has a consensus target price of $57.17, indicating a potential upside of 19.67%. Citizens Financial Group has a consensus target price of $48.33, indicating a potential upside of 28.17%. Given Citizens Financial Group’s possible higher upside, analysts clearly believe that Citizens Financial Group is more favorable than Hancock Whitney.

Valuation and benefits

This chart compares the gross revenue, earnings per share (EPS), and valuation of Hancock Whitney and Citizens Financial Group.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Hancock Whitney $1.35 billion 3.06 $463.21 million $5.79 8.25
Citizens Financial Group $6.99 billion 2.67 $2.32 billion $3.95 9.55

Citizens Financial Group has higher revenue and profit than Hancock Whitney. Hancock Whitney trades at a lower price-to-earnings ratio than Citizens Financial Group, 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 Hancock Whitney and Citizens Financial Group.

Net margins Return on equity return on assets
Hancock Whitney 38.60% 14.41% 1.42%
Citizens Financial Group 25.04% 10.26% 1.10%

About Hancock Whitney

(Get an assessment)

Hancock Whitney Corporation operates as a banking holding company for Hancock Whitney Bank which provides a range of banking products and services to commercial, small business and retail customers. It accepts various deposit products, such as non-interest bearing demand deposits, interest bearing transaction accounts, savings accounts, money market deposit accounts and term deposit accounts. The Company’s loan products include commercial and industrial loans; commercial real estate loans; construction and land development loans; residential mortgage loans, including fixed and adjustable rate loans; consumer loans including second mortgage real estate loans, home equity lines of credit and loans for non-residential consumer purposes; revolving credit facilities; and letters of credit and financial guarantees. It also offers investment brokerage and cash management services, as well as annuity and life insurance products; and trust and investment management services to pension plans, businesses and individuals, as well as seized assets. The company operates 177 full-service banking and financial services offices and 240 ATMs, primarily in the Southern Gulf Corridor, including southern and central Mississippi; southern and central Alabama; southern, central, and northwest Louisiana; the North, Central and Panhandle regions of Florida; and parts of East Texas including Houston, Beaumont, Dallas and San Antonio. It also operates a loan origination office in Nashville, Tennessee; and a trust and asset management office in Marshall, Texas. The company was formerly known as Hancock Holding Company and changed its name to Hancock Whitney Corporation in May 2018. Hancock Whitney Corporation was founded in 1883 and is headquartered in Gulfport, Mississippi.

About Citizens Financial Group

(Get an assessment)

Citizens Financial Group logoCitizens Financial Group, Inc. operates as a banking holding company for Citizens Bank, National Association which provides retail and commercial banking products and services to individuals, small businesses, middle market businesses, corporations and institutions in United States. The Company operates in two segments, Consumer Banking and Commercial Banking. The Retail Banking segment offers deposit products, mortgage and home equity loan products, credit cards, business loans, wealth management and investment services; and auto loans, education and point-of-sale financing, as well as digital deposit products. This segment serves its customers through telephone service centers, as well as through its online and mobile platforms. The Corporate Banking segment offers various financial products and solutions, including lending and leasing services, deposit and cash management services, foreign exchange solutions, interest rate risk management and commodities, as well as syndicated loans, corporate finance, mergers and acquisitions, debt and equity markets services. This segment serves the government banking, nonprofit, healthcare, technology, professional, oil and gas, asset financing, franchise financing, asset-based lending, commercial real estate, private equity and sponsor financing. It operates approximately 1,200 branches in 14 states and the District of Columbia; 114 retail and non-branch commercial offices in national markets; and approximately 3,300 ATMs. The company was formerly known as RBS Citizens Financial Group, Inc. and changed its name to Citizens Financial Group, Inc. in April 2014. Citizens Financial Group, Inc. was founded in 1828 and is headquartered in Providence , Rhode Island.



Get news and reviews for Hancock Whitney Daily – Enter your email address below to receive a concise daily summary of breaking news and analyst ratings for Hancock Whitney and related companies with MarketBeat.com’s FREE daily newsletter.

About Harold Shirley

Check Also

Mobile MPO votes to support Port Authority plan to transport containers to Montgomery by rail

A plan to increase rail transportation from the Port of Mobile to other parts of …