Atlantic Union Bankshares (NASDAQ:AUB) & Touchstone Bankshares (OTCMKTS:TSBA) Head to Head Contrast

Touchstone Bankshares (OTCMKTS:TSBA) and Atlantic Union Bankshares (NASDAQ:AUB) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Profitability

This table compares Touchstone Bankshares and Atlantic Union Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Touchstone Bankshares	N/A	N/A	N/A
Atlantic Union Bankshares	15.53%	8.50%	1.06%

Institutional and Insider Ownership

0.4% of Touchstone Bankshares shares are held by institutional investors. Comparatively, 78.6% of Atlantic Union Bankshares shares are held by institutional investors. 10.4% of Touchstone Bankshares shares are held by insiders. Comparatively, 0.9% of Atlantic Union 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.

Dividends

Touchstone Bankshares pays an annual dividend of $0.32 per share and has a dividend yield of 2.2%. Atlantic Union Bankshares pays an annual dividend of $1.48 per share and has a dividend yield of 4.3%. Touchstone Bankshares pays out 49.2% of its earnings in the form of a dividend. Atlantic Union Bankshares pays out 72.5% 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. Atlantic Union Bankshares has raised its dividend for 14 consecutive years. Atlantic Union Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Touchstone Bankshares and Atlantic Union Bankshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Touchstone Bankshares	N/A	N/A	$1.61 million	$0.65	21.92
Atlantic Union Bankshares	$1.37 billion	3.61	$209.13 million	$2.04	17.06

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Touchstone Bankshares and Atlantic Union Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Touchstone Bankshares	0	0	0	0	0.00
Atlantic Union Bankshares	0	3	5	1	2.78

Atlantic Union Bankshares has a consensus price target of $43.17, suggesting a potential upside of 24.06%. Given Atlantic Union Bankshares’ stronger consensus rating and higher possible upside, analysts plainly believe Atlantic Union Bankshares is more favorable than Touchstone Bankshares.

Volatility & Risk

Touchstone Bankshares has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Atlantic Union Bankshares has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.

Summary

Atlantic Union Bankshares beats Touchstone Bankshares on 14 of the 17 factors compared between the two stocks.

About Touchstone Bankshares

Touchstone Bankshares, Inc. operates as the bank holding company for Touchstone Bank that provides various community banking products and services in the United States. The company offers personal and business savings and checking accounts. It also provides home mortgage, professional mortgage, home equity, auto, and personal term loans; personal lines of credit; and business loans comprising commercial real estate, operating capital, business term, and construction loans, as well as business lines of credit. In addition, the company offers credit and debit cards; and digital banking, treasury, wealth management, and financial planning services. It has branches in northern North Carolina and south-central Virginia. The company was founded in 1906 and is headquartered in Prince George, Virginia.

About Atlantic Union Bankshares

Atlantic Union Bankshares Corporation operates as the bank holding company for Atlantic Union Bank that provides banking and related financial products and services to consumers and businesses in the United States. It operates in two segments, Wholesale Banking and Consumer Banking. The company accepts various deposit products, including checking, savings, time deposit, and money market accounts; certificates of deposit; and other depository services. It also provides loans for commercial, industrial, residential mortgage, and consumer purposes, as well as debit and credit cards. In addition, it provides treasury management and capital market, wealth management, private banking, trust, financial and retirement planning, brokerage, investment management, equipment finance, mortgage banking, and insurance products and services. The company offers products and services through full-service branches and ATMs, as well as through its mobile and internet banking. The company was formerly known as Union Bankshares Corporation and changed its name to Atlantic Union Bankshares Corporation in May 2019. Atlantic Union Bankshares Corporation was founded in 1902 and is headquartered in Glen Allen, Virginia.