First US Bancshares (NASDAQ:FUSB) and United Bankshares (NASDAQ:UBSI) Head to Head Review

First US Bancshares (NASDAQ:FUSB) and United Bankshares (NASDAQ:UBSI) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Profitability

This table compares First US Bancshares and United Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First US Bancshares	13.21%	8.61%	0.75%
United Bankshares	22.94%	7.60%	1.24%

Earnings & Valuation

This table compares First US Bancshares and United Bankshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First US Bancshares	$61.84 million	1.25	$8.17 million	$1.33	10.16
United Bankshares	$1.63 billion	3.15	$373.00 million	$2.74	13.84

United Bankshares has higher revenue and earnings than First US Bancshares. First US Bancshares is trading at a lower price-to-earnings ratio than United Bankshares, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

First US Bancshares has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, United Bankshares has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for First US Bancshares and United Bankshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First US Bancshares	0	0	0	0	0.00
United Bankshares	0	3	0	0	2.00

United Bankshares has a consensus target price of $43.00, suggesting a potential upside of 13.37%. Given United Bankshares’ stronger consensus rating and higher probable upside, analysts plainly believe United Bankshares is more favorable than First US Bancshares.

Dividends

First US Bancshares pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. United Bankshares pays an annual dividend of $1.48 per share and has a dividend yield of 3.9%. First US Bancshares pays out 21.1% of its earnings in the form of a dividend. United Bankshares pays out 54.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. United Bankshares has increased its dividend for 26 consecutive years. United Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

18.7% of First US Bancshares shares are owned by institutional investors. Comparatively, 70.8% of United Bankshares shares are owned by institutional investors. 11.2% of First US Bancshares shares are owned by insiders. Comparatively, 3.7% of United Bankshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

United Bankshares beats First US Bancshares on 13 of the 16 factors compared between the two stocks.

About First US Bancshares

First US Bancshares, Inc. operates as the bank holding company for First US Bank that provides commercial banking products and services. The company offers non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. Its loan products include commercial construction, land, and land development loans, including residential housing projects, commercial and industrial development, and for purchase and improvement of raw land for agricultural production; mortgage loans on one-to-four family and multi-family residential properties; real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers, and other commercial properties; commercial and industrial loans and leases; and secured and unsecured personal loans, including automobile loans, loans for household and personal purposes, and other direct consumer installment loans. The company also provides loans secured by collateral in form of personal property items. In addition, it provides letters of credit; and safe deposit box and remote deposit capture services. The company serves small-and medium-sized businesses, property managers, business executives, professionals, and other individuals. The company was formerly known as United Security Bancshares, Inc. and changed its name to First US Bancshares, Inc. in October 2016. First US Bancshares, Inc. was founded in 1952 and is headquartered in Birmingham, Alabama.

About United Bankshares

United Bankshares, Inc., through its subsidiaries, primarily provides commercial and retail banking products and services in the United States. It operates through two segments, Community Banking and Mortgage Banking. The company accepts checking, savings, and time and money market accounts; individual retirement accounts; and demand deposits, statement and special savings, and NOW accounts. Its loan products include commercial loans and leases to small to mid-size industrial and commercial companies; construction and real estate loans, such as commercial and residential mortgages, and loans secured by owner-occupied real estate; personal, student, credit card receivables, personal, commercial, and floor plan loans; and home equity loans. In addition, the company provides credit cards; safe deposit boxes, wire transfers, and other banking products and services; investment and security services; services to correspondent banks, including buying and selling federal funds; automated teller machine services; and internet and telephone banking services. Further, it offers community banking services, such as asset management, real property title insurance, financial planning, mortgage banking, and brokerage services, as well as investment management and retirement planning services. United Bankshares, Inc. was incorporated in 1982 and is headquartered in Charleston, West Virginia.