Westamerica Bancorporation (NASDAQ:WABC – Get Rating) and United Bancshares (NASDAQ:UBOH – Get Rating) are both small cap finance companies, but which business is superior? We’ll compare the two companies based on institutional ownership strength, earnings, risk, profitability, dividends, valuation, and analyst recommendations.
Volatility and risk
Westamerica Bancorporation has a beta of 0.59, indicating its stock price is 41% less volatile than the S&P 500. In contrast, United Bancshares has a beta of 0.65, indicating its stock price is 35% less volatile than the S&P 500.
This table compares the net margins, return on equity and return on assets of Westamerica Bancorporation and United Bancshares.
|Net margins||Return on equity||return on assets|
Institutional and insider ownership
81.7% of the shares of Westamerica Bancorporation are held by institutional investors. By comparison, 33.2% of United Bancshares shares are held by institutional investors. 4.2% of Westamerica Bancorporation’s stock is held by insiders of the company. Comparatively, 6.6% of United Bancshares shares are held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company is poised for long-term growth.
Westamerica Bancorporation pays an annual dividend of $1.68 per share and has a dividend yield of 2.8%. United Bancshares pays an annual dividend of $0.84 per share and has a dividend yield of 3.4%. Westamerica Bancorporation pays 49.3% of its profits as a dividend. United Bancshares pays 23.5% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Westamerica Bancorporation has increased its dividend for 29 consecutive years and United Bancshares has increased its dividend for 2 consecutive years. United Bancshares is clearly the best dividend stock, given its higher yield and lower payout ratio.
Valuation and benefits
This chart compares the revenue, earnings per share (EPS), and valuation of Westamerica Bancorporation and United Bancshares.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Westamerica Bancorporation||$216.79 million||7.33||$86.51 million||$3.41||5:33 p.m.|
|United Bancshares||$56.15 million||1.45||$13.58 million||$3.58||6.91|
Westamerica Bancorporation has higher revenues and profits than United Bancshares. United Bancshares trades at a lower price-to-earnings ratio than Westamerica Bancorporation, indicating that it is currently the more affordable of the two stocks.
This is a summary of the current ratings and recommendations for Westamerica Bancorporation and United Bancshares, as reported by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|United Bancshares||0||0||0||0||N / A|
Westamerica Bancorporation currently has a consensus price target of $75.00, indicating a potential upside of 26.88%. Given Westamerica Bancorporation’s possible higher upside, stock analysts clearly believe that Westamerica Bancorporation is more favorable than United Bancshares.
Westamerica Bancorporation beats United Bancshares on 11 of the 16 factors compared between the two stocks.
About Westamerica Bancorporation
(Get an evaluation)
Westamerica Bancorporation operates as a bank holding company for Westamerica Bank which provides various personal and business banking products and services. The Company accepts various deposit products, including retail savings and checking accounts, and certificates of deposit. Its loan portfolio includes commercial, commercial and residential real estate loans, home construction loans and consumer installment loans, as well as indirect auto loans. It operates through 78 branches in 21 counties in northern and central California. The company was formerly known as Independent Bankshares Corporation and changed its name to Westamerica Bancorporation in 1983. The company was incorporated in 1972 and is headquartered in San Rafael, California.
About United Bancshares
(Get an evaluation)
United Bancshares, Inc. operates as a bank holding company for The Union Bank Company which provides various business and consumer banking services. The Company accepts various deposit products, such as checks, savings, demand deposits, money market deposits, term certificates and individual retirement accounts, as well as certificates of deposit. Its lending products include commercial and residential real estate, agriculture, trade and industry, home equity and various types of small business consumer and administrative loans. The company also offers wealth management, financial needs analysis, mutual fund, securities trading, annuity and life insurance services; and cash management, online and mobile banking, ATM, bill payment, safe rental, payment and other personalized services. It operates eighteen full-service banking centers and three loan origination offices in northwest and central Ohio. United Bancshares, Inc. was founded in 1904 and is headquartered in Columbus Grove, Ohio.
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