Contrasting United Bankshares (NASDAQ:UBSI) & United Community Banks (NYSE:UCB)

United Community Banks (NYSE:UCB) and United Bankshares (NASDAQ:UBSI) are both mid-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Dividends

United Community Banks pays an annual dividend of $1.00 per share and has a dividend yield of 3.3%. United Bankshares pays an annual dividend of $1.52 per share and has a dividend yield of 3.8%. United Community Banks pays out 38.3% of its earnings in the form of a dividend. United Bankshares pays out 46.5% 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. United Bankshares has raised its dividend for 26 consecutive years. United Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

United Community Banks has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, United Bankshares has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Valuation and Earnings

This table compares United Community Banks and United Bankshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Community Banks	$1.54 billion	2.39	$328.10 million	$2.61	11.75
United Bankshares	$1.82 billion	3.09	$464.60 million	$3.27	12.34

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

Analyst Ratings

This is a summary of current ratings and target prices for United Community Banks and United Bankshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Community Banks	0	4	3	0	2.43
United Bankshares	0	2	2	1	2.80

United Community Banks currently has a consensus price target of $38.00, indicating a potential upside of 23.96%. United Bankshares has a consensus price target of $44.67, indicating a potential upside of 10.73%. Given United Community Banks’ higher probable upside, equities research analysts clearly believe United Community Banks is more favorable than United Bankshares.

Profitability

This table compares United Community Banks and United Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Community Banks	21.35%	9.49%	1.20%
United Bankshares	25.51%	8.60%	1.40%

Insider & Institutional Ownership

82.3% of United Community Banks shares are held by institutional investors. Comparatively, 70.8% of United Bankshares shares are held by institutional investors. 0.5% of United Community Banks shares are held by insiders. Comparatively, 3.7% of United Bankshares shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

United Bankshares beats United Community Banks on 12 of the 18 factors compared between the two stocks.

About United Community Banks

United Community Banks, Inc. operates as the financial holding company for United Community Bank that provides financial products and services to commercial, retail, government, education, energy, health care, and real estate sectors. The company accepts various deposit products, including checking, savings, money market, and other deposit accounts. It also offers lending services, including real estate, consumer, and commercial loans, to individuals, small businesses, mid-sized commercial businesses, and non-profit organizations, as well as secured and unsecured, and mortgage loans. In addition, the company originate loans partially guaranteed by the SBA and USDA loan programs. Further, it provides wealth management services comprising financial planning, customized portfolio management, and investment advice; trust services to manage fiduciary assets; non-deposit investment products; and insurance products, including life insurance, long-term care insurance, and tax-deferred annuities, as well as invests in residential and commercial mortgage-backed securities, asset-backed securities, the U.S. treasury, the U.S. agency, and municipal obligations. Additionally, the company offers reinsurance on a property insurance contract; insurance agency services; brokerage services; and payment processing, merchant, wire transfer, private banking, and other related financial services. It operates through a network of 171 branches in Florida, Georgia, North Carolina, South Carolina, and Tennessee. United Community Banks, Inc. was founded in 1950 and is headquartered in Blairsville, Georgia.

About United Bankshares

United Bankshares, Inc., through its subsidiaries, primarily provides commercial and retail banking products and services in the United States. It operates through two segments, Community Banking and Mortgage Banking. The company accepts checking, savings, and time and money market accounts; individual retirement accounts; and demand deposits, statement and special savings, and NOW accounts. Its loan products include commercial loans and leases to small to mid-size industrial and commercial companies; construction and real estate loans, such as commercial and residential mortgages, and loans secured by owner-occupied real estate; personal, student, credit card receivables, personal, commercial, and floor plan loans; and home equity loans. In addition, the company provides credit cards; safe deposit boxes, wire transfers, and other banking products and services; investment and security services; services to correspondent banks, including buying and selling federal funds; automated teller machine services; and internet and telephone banking services. Further, it offers community banking services, such as asset management, real property title insurance, financial planning, mortgage banking, and brokerage services, as well as investment management and retirement planning services. United Bankshares, Inc. was incorporated in 1982 and is headquartered in Charleston, West Virginia.