Financial Analysis: United Bankshares (UBSI) vs. Its Rivals
United Bankshares (NASDAQ: UBSI) is one of 308 publicly-traded companies in the “Banks” industry, but how does it compare to its rivals? We will compare United Bankshares to related companies based on the strength of its dividends, profitability, risk, valuation, institutional ownership, earnings and analyst recommendations.
Institutional and Insider Ownership
65.5% of United Bankshares shares are held by institutional investors. Comparatively, 52.0% of shares of all “Banks” companies are held by institutional investors. 6.2% of United Bankshares 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a summary of current recommendations for United Bankshares and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United Bankshares Competitors||2263||8670||8665||359||2.36|
United Bankshares presently has a consensus price target of $42.33, indicating a potential upside of 18.25%. As a group, “Banks” companies have a potential downside of 0.01%. Given United Bankshares’ higher probable upside, equities analysts plainly believe United Bankshares is more favorable than its rivals.
This table compares United Bankshares and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United Bankshares Competitors||18.58%||8.14%||0.92%|
Risk and Volatility
United Bankshares has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, United Bankshares’ rivals have a beta of 0.78, suggesting that their average stock price is 22% less volatile than the S&P 500.
Valuation and Earnings
This table compares United Bankshares and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|United Bankshares||$540.37 million||$147.08 million||18.84|
|United Bankshares Competitors||$5.50 billion||$827.87 million||386.06|
United Bankshares’ rivals have higher revenue and earnings than United Bankshares. United Bankshares is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
United Bankshares pays an annual dividend of $1.36 per share and has a dividend yield of 3.8%. United Bankshares pays out 71.6% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.9% of their earnings in the form of a dividend. United Bankshares has raised its dividend for 2 consecutive years.
United Bankshares rivals beat United Bankshares on 9 of the 15 factors compared.
United Bankshares Company Profile
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.
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