Union Bankshares (UBSH) vs. West Bancorporation (WTBA) Financial Analysis

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Union Bankshares and West Bancorporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Union Bankshares 0 2 4 1 2.86
West Bancorporation 0 0 1 0 3.00



Union Bankshares presently has a consensus target price of $41.17, indicating a potential upside of 15.60%. West Bancorporation has a consensus target price of $27.00, indicating a potential upside of 28.08%. Given West Bancorporation’s stronger consensus rating and higher probable upside, analysts clearly believe West Bancorporation is more favorable than Union Bankshares.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Union Bankshares $633.03 million 4.62 $146.25 million $2.71 13.14
West Bancorporation $92.54 million 3.73 $28.51 million $1.73 12.18

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

Insider & Institutional Ownership

64.8% of Union Bankshares shares are held by institutional investors. Comparatively, 37.0% of West Bancorporation shares are held by institutional investors. 1.8% of Union Bankshares shares are held by insiders. Comparatively, 3.1% of West Bancorporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Union Bankshares pays an annual dividend of $0.92 per share and has a dividend yield of 2.6%. West Bancorporation pays an annual dividend of $0.84 per share and has a dividend yield of 4.0%. Union Bankshares pays out 33.9% of its earnings in the form of a dividend. West Bancorporation pays out 48.6% 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. Union Bankshares has raised its dividend for 7 consecutive years and West Bancorporation has raised its dividend for 6 consecutive years.

Risk & Volatility

Union Bankshares has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, West Bancorporation has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Union Bankshares 24.34% 9.35% 1.33%
West Bancorporation 28.99% 14.86% 1.25%

Summary

Union Bankshares beats West Bancorporation on 12 of the 18 factors compared between the two stocks.

Union Bankshares Company Profile

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.

West Bancorporation Company Profile

West Bancorporation, Inc. operates as the financial holding company for West Bank that provides community banking and trust services to individuals and small- to medium-sized businesses in the United States. It offers various deposit products, including checking, savings, and money market accounts, as well as time certificates of deposit. The company also provides loan products comprising commercial real estate loans, construction and land development loans, commercial lines of credit, and commercial term loans; consumer loans, including loans extended to individuals for household, family, and other personal expenditures not secured by real estate; and 1-4 family residential mortgages and home equity loans. In addition, it offers trust services, including the administration of estates, conservatorships, personal trusts, and agency accounts. Further, the company provides Internet and mobile banking services; treasury management services comprising cash management, client-generated automated clearing house transaction, remote deposit, and fraud protection services; and merchant credit card processing services and corporate credit cards. It has eight offices in the Des Moines area; one office in Coralville; and one office in Rochester, Minnesota. West Bancorporation, Inc. was founded in 1893 and is based in West Des Moines, Iowa.

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