Citizens & Northern (NASDAQ:CZNC – Get Free Report) and United Bancorporation of Alabama (OTCMKTS:UBAB – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.
Profitability
This table compares Citizens & Northern and United Bancorporation of Alabama’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Citizens & Northern | 14.47% | 8.28% | 0.86% |
| United Bancorporation of Alabama | 31.02% | 22.48% | 2.18% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Citizens & Northern and United Bancorporation of Alabama, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Citizens & Northern | 0 | 1 | 0 | 0 | 2.00 |
| United Bancorporation of Alabama | 0 | 0 | 0 | 0 | 0.00 |
Dividends
Citizens & Northern pays an annual dividend of $1.12 per share and has a dividend yield of 5.2%. United Bancorporation of Alabama pays an annual dividend of $1.20 per share and has a dividend yield of 2.1%. Citizens & Northern pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. United Bancorporation of Alabama pays out 14.1% of its earnings in the form of a dividend.
Risk and Volatility
Citizens & Northern has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, United Bancorporation of Alabama has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500.
Valuation & Earnings
This table compares Citizens & Northern and United Bancorporation of Alabama”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Citizens & Northern | $137.92 million | 2.39 | $24.15 million | $1.44 | 14.88 |
| United Bancorporation of Alabama | $87.26 million | 2.20 | $31.54 million | $8.53 | 6.68 |
United Bancorporation of Alabama has lower revenue, but higher earnings than Citizens & Northern. United Bancorporation of Alabama is trading at a lower price-to-earnings ratio than Citizens & Northern, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
30.8% of Citizens & Northern shares are owned by institutional investors. Comparatively, 5.5% of United Bancorporation of Alabama shares are owned by institutional investors. 3.7% of Citizens & Northern shares are owned 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.
Summary
Citizens & Northern beats United Bancorporation of Alabama on 8 of the 14 factors compared between the two stocks.
About Citizens & Northern
Citizens & Northern Corp. is a holding company, which engages in community banking. It provides a full range of banking and mortgage services to individual and corporate customers in North Central Pennsylvania and Southern New York State. The firm’s lending products include mortgage loans, commercial loans, and consumer loans. Its deposit products include various types of checking accounts, passbook and statement savings, money market accounts, interest checking accounts, individual retirement accounts, and certificates of deposit. The company was founded in 1864 and is headquartered in Wellsboro, PA.
About United Bancorporation of Alabama
United Bancorporation of Alabama, Inc. operates as the bank holding company for United Bank that provides banking services. The company offers checking and savings accounts, certificates of deposit, individual retirement accounts, small business programs, business solutions, merchant services, and cash management services. It also provides various lending services, such as personal loans, business loans, lines of credit, and equipment loans; real estate loans for the agricultural community and working lines of credit; and overdraft services. In addition, the company offers debit cards, prepaid cards, Visa credit cards, gift cards, and safe deposit boxes. Further, it provides check cashing, convenience, remote deposit, mobile check deposit, personal storage compartments, Web payment options, insurance products, investment and brokerage, and online and mobile banking services. United Bancorporation of Alabama, Inc. was founded in 1904 and is based in Atmore, Alabama.
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