United Bankshares (NASDAQ: UBSI) and Hudson Valley Holding Corp. (NYSE:HVB) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Insider & Institutional Ownership

62.3% of United Bankshares shares are owned by institutional investors. 6.2% of United Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for United Bankshares and Hudson Valley Holding Corp., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Bankshares 0 4 0 0 2.00
Hudson Valley Holding Corp. 0 0 0 0 N/A

United Bankshares presently has a consensus target price of $42.50, indicating a potential upside of 19.05%. Given United Bankshares’ higher possible upside, analysts plainly believe United Bankshares is more favorable than Hudson Valley Holding Corp..

Earnings & Valuation

This table compares United Bankshares and Hudson Valley Holding Corp.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
United Bankshares $537.56 million 6.97 $199.43 million $1.90 18.79
Hudson Valley Holding Corp. N/A N/A N/A N/A N/A

United Bankshares has higher revenue and earnings than Hudson Valley Holding Corp..

Dividends

United Bankshares pays an annual dividend of $1.32 per share and has a dividend yield of 3.7%. Hudson Valley Holding Corp. does not pay a dividend. United Bankshares pays out 69.5% of its earnings in the form of a dividend. Hudson Valley Holding Corp. has increased its dividend for 3 consecutive years.

Profitability

This table compares United Bankshares and Hudson Valley Holding Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Bankshares 25.20% 6.42% 1.00%
Hudson Valley Holding Corp. 17.98% 6.34% 0.61%

Summary

United Bankshares beats Hudson Valley Holding Corp. on 8 of the 10 factors compared between the two stocks.

About United Bankshares

United Bankshares, Inc. (United) is a bank holding company. The Company operates through community banking segment. United’s Banking Subsidiaries offer a range of commercial and retail banking services and products. United, through its subsidiaries, engages in community banking and offers banking products and services permitted by law and regulation. Included among the banking services offered are the acceptance of deposits in checking, savings, time and money market accounts; the making and servicing of personal, commercial, floor plan and student loans, and the making of construction and real estate loans. Also offered are individual retirement accounts, safe deposit boxes, wire transfers and other standard banking products and services. As part of its lending function, the Banking Subsidiaries offer credit card services. The Company’s loan portfolio consists of commercial, real estate and consumer loans, including credit card and home equity loans.

About Hudson Valley Holding Corp.

Hudson Valley Holding Corp. (Hudson Valley) is a bank holding company. The Company provides financial services through its wholly owned subsidiary, Hudson Valley Bank, N.A. (HVB or the Bank), a national banking association. HVB has 17 branch offices in Westchester County, New York, four in Manhattan, New York, four in Bronx County, New York, two in Rockland County, New York, and one in Kings County, New York. The Company provides asset-based lending products through a wholly owned subsidiary of HVB, HVB Capital Credit LLC. The Company provides equipment loan and lease financing through a wholly owned subsidiary of HVB, HVB Equipment Capital, LLC. The Company’s principal customers are businesses, professionals, municipalities, not-for-profit organizations and individuals. In addition, the Company also offers a software application designed to meet the administrative needs of bankruptcy trustees through a marketing and licensing agreement with the application vendor.

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