Union Bankshares Corporation (NASDAQ: UBSH) is one of 327 public companies in the “Banks” industry, but how does it compare to its peers? We will compare Union Bankshares Corporation to similar businesses based on the strength of its profitability, risk, valuation, earnings, institutional ownership, dividends and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Union Bankshares Corporation and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Union Bankshares Corporation 0 1 2 1 3.00
Union Bankshares Corporation Competitors 1994 7958 8127 309 2.37

Union Bankshares Corporation presently has a consensus target price of $38.50, suggesting a potential upside of 9.03%. As a group, “Banks” companies have a potential downside of 8.29%. Given Union Bankshares Corporation’s stronger consensus rating and higher probable upside, research analysts clearly believe Union Bankshares Corporation is more favorable than its peers.

Volatility and Risk

Union Bankshares Corporation has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Union Bankshares Corporation’s peers have a beta of 0.78, meaning that their average stock price is 22% less volatile than the S&P 500.

Profitability

This table compares Union Bankshares Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Union Bankshares Corporation 20.02% 8.03% 0.94%
Union Bankshares Corporation Competitors 19.02% 8.87% 0.94%

Dividends

Union Bankshares Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 2.3%. Union Bankshares Corporation pays out 44.4% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 36.7% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares Union Bankshares Corporation and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Union Bankshares Corporation $336.61 million N/A 19.62
Union Bankshares Corporation Competitors N/A N/A 18.79

Union Bankshares Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

63.7% of Union Bankshares Corporation shares are held by institutional investors. Comparatively, 52.6% of shares of all “Banks” companies are held by institutional investors. 2.2% of Union Bankshares Corporation shares are held by company insiders. Comparatively, 10.4% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Union Bankshares Corporation beats its peers on 10 of the 14 factors compared.

About Union Bankshares Corporation

Union Bankshares Corporation is a financial holding company and bank holding company. The Company operates through two segments: a community bank segment and mortgage loan origination business segment. The Company offers financial services through its community bank subsidiary, Union Bank & Trust (the Bank) and three non-bank financial services affiliates. The Company’s non-bank financial services affiliates include Union Mortgage Group, Inc. (UMG), Union Insurance Group, LLC and Old Dominion Capital Management, Inc. The community bank segment included one subsidiary bank, which provided loan, deposit, investment, and trust services to retail and commercial customers throughout its 114 retail locations in Virginia, as of December 31, 2016. The mortgage segment includes UMG, which provides a range of mortgage loan products principally in Virginia, North Carolina, Maryland, and the Washington D.C. metro area.

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