Reviewing Union Bankshares (UNB) and Bank7 (BSVN)

Union Bankshares (NASDAQ:UNB) and Bank7 (NASDAQ:BSVN) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Valuation and Earnings

This table compares Union Bankshares and Bank7’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Union Bankshares $41.65 million 3.53 $7.07 million N/A N/A
Bank7 $48.13 million 3.59 $25.00 million $2.44 6.94

Bank7 has higher revenue and earnings than Union Bankshares.

Insider and Institutional Ownership

16.1% of Union Bankshares shares are owned by institutional investors. Comparatively, 33.5% of Bank7 shares are owned by institutional investors. 2.4% of Union Bankshares shares are owned by insiders. Comparatively, 63.4% of Bank7 shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Union Bankshares and Bank7’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Union Bankshares 16.38% 16.13% 1.30%
Bank7 48.17% 28.16% 3.18%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Union Bankshares and Bank7, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Union Bankshares 0 0 1 0 3.00
Bank7 0 0 3 0 3.00

Union Bankshares presently has a consensus target price of $42.00, indicating a potential upside of 27.58%. Bank7 has a consensus target price of $23.00, indicating a potential upside of 35.77%. Given Bank7’s higher probable upside, analysts clearly believe Bank7 is more favorable than Union Bankshares.

Dividends

Union Bankshares pays an annual dividend of $1.24 per share and has a dividend yield of 3.8%. Bank7 does not pay a dividend. Union Bankshares has raised its dividend for 3 consecutive years.

Summary

Bank7 beats Union Bankshares on 10 of the 13 factors compared between the two stocks.

Union Bankshares Company Profile

Union Bankshares, Inc. operates as the bank holding company for Union Bank that provides retail, commercial, and municipal banking services in northern Vermont and New Hampshire. It offers retail depository services, such as personal checking, savings, money market, IRA/SEP/KEOGH, and health savings accounts, as well as certificates of deposit. The company also provides and commercial real estate loans; consumer loans; and municipal loans; commercial loans for plant and equipment, working capital, real estate renovation, and other business purposes to business owners and investors; and residential real estate loans. In addition, it offers small business administration guaranteed, and residential construction and mortgage loans; online cash management services, including account reconciliation, credit card depository, automated clearing house origination, wire transfers, and night depository services; merchant credit card services; remote deposit capture services; and online mortgage application services. Further, the company provides business checking accounts; standby letters of credit, bank checks or money orders, and safe deposit boxes; ATM services and cards; debit cards; and telephone, Internet, and mobile banking services; home improvement loans and overdraft checking facility against preauthorized lines of credit; customer repurchase agreement sweeps; and asset management, fiduciary, and trust services. The company offers retail banking services to individuals; and commercial banking services to small and medium sized corporations, partnerships, and sole proprietorships, as well as nonprofit organizations, local municipalities, and school districts. The company operates 18 banking offices, 2 loan centers, and various ATMs. Union Bankshares, Inc. was founded in 1891 and is headquartered in Morrisville, Vermont.

Bank7 Company Profile

Bank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers in Oklahoma, Kansas, and Texas. It accepts demand, savings, checking, money market, and negotiable order of withdrawal accounts, as well as certificates of deposit. The company also provides commercial real estate, hospitality, energy, and commercial and industrial loans; and consumer loans, such as secured and unsecured term loans and home improvement loans; and residential real estate loans, mortgage banking services, personal lines of credit, loans for the purchase of automobiles, and other installment loans, as well as ATM services. It operates through seven branches in Oklahoma, Texas, and Kansas. The company was formerly known as Haines Financial Corp. Bank7 Corp. was founded in 2004 and is headquartered in Oklahoma City, Oklahoma.

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