Union Bankshares (NASDAQ:UNB) and Bank of the James Financial Group (NASDAQ:BOTJ) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.
Risk and Volatility
Union Bankshares has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500. Comparatively, Bank of the James Financial Group has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500.
15.9% of Union Bankshares shares are owned by institutional investors. Comparatively, 34.1% of Bank of the James Financial Group shares are owned by institutional investors. 2.3% of Union Bankshares shares are owned by insiders. Comparatively, 10.3% of Bank of the James Financial Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Union Bankshares pays an annual dividend of $1.20 per share and has a dividend yield of 2.4%. Bank of the James Financial Group pays an annual dividend of $0.24 per share and has a dividend yield of 1.6%. Union Bankshares has raised its dividend for 2 consecutive years. Union Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Union Bankshares and Bank of the James Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bank of the James Financial Group||13.27%||9.75%||0.78%|
Valuation & Earnings
This table compares Union Bankshares and Bank of the James Financial Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Union Bankshares||$38.41 million||5.75||$8.44 million||N/A||N/A|
|Bank of the James Financial Group||$28.52 million||2.29||$2.92 million||N/A||N/A|
Union Bankshares has higher revenue and earnings than Bank of the James Financial Group.
This is a summary of recent recommendations and price targets for Union Bankshares and Bank of the James Financial Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bank of the James Financial Group||0||0||0||0||N/A|
Union Bankshares presently has a consensus target price of $42.00, indicating a potential downside of 14.98%. Given Union Bankshares’ higher possible upside, analysts clearly believe Union Bankshares is more favorable than Bank of the James Financial Group.
Union Bankshares beats Bank of the James Financial Group on 12 of the 14 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, health savings, and individual retirement 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 17 banking offices, 3 loan centers, and various ATMs. Union Bankshares, Inc. was founded in 1891 and is headquartered in Morrisville, Vermont.
Bank of the James Financial Group Company Profile
Bank of the James Financial Group, Inc. operates as the bank holding company for Bank of the James that provides general retail and commercial banking services to individuals, businesses, associations and organizations, and governmental authorities in Virginia. It accepts checking, savings, and individual retirement accounts, as well as other time deposits, including money market accounts and certificates of deposit. The company also offers loans to small- and medium-sized businesses for the purchases of equipment, facilities upgrades, inventory acquisition, and various working capital purposes; commercial and residential construction and development loans; commercial real estate mortgage loans; and secured and unsecured consumer loans, such as lines of credit and overdraft lines of credit, as well as personal, automobile, installment, demand, and home equity loans for personal, family, or household purposes. In addition, it provides other banking services comprising safe deposit boxes, traveler's checks, direct deposit of payroll and social security checks, automatic drafts for various accounts, and treasury management and credit card merchant services. Further, the company offers securities brokerage and investment services; and telephone and Internet banking services comprising online bill pay, as well as acts as an agent for insurance and annuity products. It operates 13 full service locations, 3 limited service branches, 1 loan production offices; and 3 mortgage production offices. Bank of the James Financial Group, Inc. was incorporated in 2004 and is headquartered in Lynchburg, Virginia.
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