United Bankshares (NASDAQ:UBSI) vs. The Competition Critical Review

United Bankshares (NASDAQ: UBSI) is one of 314 publicly-traded companies in the “Banks” industry, but how does it contrast to its rivals? We will compare United Bankshares to similar businesses based on the strength of its profitability, dividends, risk, analyst recommendations, earnings, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for United Bankshares and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Bankshares 0 5 0 0 2.00
United Bankshares Competitors 2486 9028 8990 378 2.35

United Bankshares presently has a consensus price target of $42.33, suggesting a potential upside of 16.62%. As a group, “Banks” companies have a potential downside of 4.56%. Given United Bankshares’ higher possible upside, research analysts plainly believe United Bankshares is more favorable than its rivals.

Dividends

United Bankshares pays an annual dividend of $1.36 per share and has a dividend yield of 3.7%. United Bankshares pays out 87.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 36.2% of their earnings in the form of a dividend.

Insider and Institutional Ownership

65.4% 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 insiders. Comparatively, 10.4% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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 19.93% 6.28% 1.05%
United Bankshares Competitors 17.51% 8.40% 0.95%

Earnings and Valuation

This table compares United Bankshares and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
United Bankshares $755.45 million $147.08 million 23.27
United Bankshares Competitors $5.65 billion $755.73 million 404.88

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.

Summary

United Bankshares rivals beat United Bankshares on 9 of the 14 factors compared.

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.

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