Analyzing Oak Valley Bancorp (NASDAQ:OVLY) & Union Bankshares (NASDAQ:UBSH)

Oak Valley Bancorp (NASDAQ:OVLY) and Union Bankshares (NASDAQ:UBSH) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Insider & Institutional Ownership

20.5% of Oak Valley Bancorp shares are held by institutional investors. Comparatively, 64.4% of Union Bankshares shares are held by institutional investors. 17.4% of Oak Valley Bancorp shares are held by company insiders. Comparatively, 1.8% of Union Bankshares shares 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.

Earnings & Valuation

This table compares Oak Valley Bancorp and Union Bankshares’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oak Valley Bancorp $44.89 million 3.51 $11.54 million N/A N/A
Union Bankshares $633.03 million 4.44 $146.25 million $2.71 12.63

Union Bankshares has higher revenue and earnings than Oak Valley Bancorp.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Oak Valley Bancorp and Union Bankshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oak Valley Bancorp 0 0 0 0 N/A
Union Bankshares 0 1 4 1 3.00

Union Bankshares has a consensus price target of $40.60, indicating a potential upside of 18.64%. Given Union Bankshares’ higher probable upside, analysts clearly believe Union Bankshares is more favorable than Oak Valley Bancorp.

Risk & Volatility

Oak Valley Bancorp has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. Comparatively, Union Bankshares has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.

Dividends

Oak Valley Bancorp pays an annual dividend of $0.27 per share and has a dividend yield of 1.4%. Union Bankshares pays an annual dividend of $0.92 per share and has a dividend yield of 2.7%. Union Bankshares pays out 33.9% of its earnings in the form of a dividend. Oak Valley Bancorp has increased its dividend for 3 consecutive years and Union Bankshares has increased its dividend for 7 consecutive years. Union Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Oak Valley Bancorp and Union Bankshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oak Valley Bancorp 25.76% 12.11% 1.10%
Union Bankshares 24.34% 9.35% 1.33%

Summary

Union Bankshares beats Oak Valley Bancorp on 11 of the 16 factors compared between the two stocks.

About Oak Valley Bancorp

Oak Valley Bancorp operates as the bank holding company for Oak Valley Community Bank that provides banking products and services to individuals and small and medium sized businesses in Oakdale, California, and surrounding areas. The company accepts various deposits products, such as checking and savings, money market, health savings, and individual retirement accounts, as well as certificates of deposit. It also offers commercial real estate loans; commercial business lending and trade finance; and small business administration lending, as well as consumer loans consisting of personal loans, automobile loans, home improvement loans, home mortgage loans, revolving lines of credit, and other personal loans. In addition, the company provides online banking, remote deposit capture, mobile banking, merchant, night depository, extended hours, wire transfer of funds, and note collection services, as well as automated teller machines. As of January 24, 2019, it operated through 17 branches, including Oakdale, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, Tracy, Sacramento; two branches in Sonora; three branches in Modesto; and three branches in Bridgeport, Mammoth Lakes, and Bishop. Oak Valley Bancorp was founded in 1990 and is headquartered in Oakdale, California.

About Union Bankshares

Union Bankshares Corporation operates as the holding company for Union Bank & Trust that provides banking and related financial services to consumers and businesses. It accepts various deposit products, including checking, savings, NOW, time deposit, and money market accounts, as well as certificates of deposit and other depository services. The company also offers loans for commercial, industrial, residential mortgage, and consumer purposes. In addition, it provides credit cards, automated teller machine (ATM) services, mobile and Internet banking services, and online bill payment services, as well as trust, and wealth management services to consumers and businesses. Further, the company offers securities, brokerage, and investment advisory services; and originates and sells mortgage loan products in the secondary market. As of February 1, 2019, it operated 155 branches and approximately 200 ATMs in Virginia, North Carolina, and Maryland. The company was formerly known as Union First Market Bankshares Corporation and changed its name to Union Bankshares Corporation in April 2014. Union Bankshares Corporation was founded in 1902 and is headquartered in Richmond, Virginia.

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