Fulton Financial (NASDAQ: FULT) and Univest Co. of Pennsylvania (NASDAQ:UVSP) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Analyst Ratings

This is a summary of current ratings for Fulton Financial and Univest Co. of Pennsylvania, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fulton Financial 1 5 0 0 1.83
Univest Co. of Pennsylvania 0 2 1 0 2.33

Fulton Financial currently has a consensus price target of $18.25, suggesting a potential upside of 0.83%. Univest Co. of Pennsylvania has a consensus price target of $32.67, suggesting a potential upside of 15.84%. Given Univest Co. of Pennsylvania’s stronger consensus rating and higher possible upside, analysts clearly believe Univest Co. of Pennsylvania is more favorable than Fulton Financial.

Risk & Volatility

Fulton Financial has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Univest Co. of Pennsylvania has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Profitability

This table compares Fulton Financial and Univest Co. of Pennsylvania’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fulton Financial 21.15% 8.28% 0.92%
Univest Co. of Pennsylvania 18.71% 8.35% 0.99%

Valuation and Earnings

This table compares Fulton Financial and Univest Co. of Pennsylvania’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fulton Financial $793.28 million 4.00 $161.62 million $1.03 17.57
Univest Co. of Pennsylvania $182.57 million 4.48 $19.50 million $1.53 18.43

Fulton Financial has higher revenue and earnings than Univest Co. of Pennsylvania. Fulton Financial is trading at a lower price-to-earnings ratio than Univest Co. of Pennsylvania, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

62.7% of Fulton Financial shares are owned by institutional investors. Comparatively, 70.8% of Univest Co. of Pennsylvania shares are owned by institutional investors. 0.7% of Fulton Financial shares are owned by insiders. Comparatively, 3.6% of Univest Co. of Pennsylvania shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Fulton Financial pays an annual dividend of $0.44 per share and has a dividend yield of 2.4%. Univest Co. of Pennsylvania pays an annual dividend of $0.80 per share and has a dividend yield of 2.8%. Fulton Financial pays out 42.7% of its earnings in the form of a dividend. Univest Co. of Pennsylvania pays out 52.3% 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.

Summary

Univest Co. of Pennsylvania beats Fulton Financial on 10 of the 16 factors compared between the two stocks.

Fulton Financial Company Profile

Fulton Financial Corporation is a financial holding company. The Company is the bank holding company of Fulton Bank N.A. (the Bank). As of December 31, 2016, the Company’s six subsidiary banks were located primarily in suburban or semi-rural geographic markets throughout a five-state region (Pennsylvania, Delaware, Maryland, New Jersey and Virginia). Each of the Company’s subsidiary banks offers a range of consumer and commercial banking products and services in its local market area. Personal banking services include various checking account and savings deposit products, certificates of deposit and individual retirement accounts. The subsidiary banks offer a range of consumer lending products to creditworthy customers in their market areas. Commercial banking services are provided to small and medium sized businesses. It also offers investment management, trust, brokerage, insurance and investment advisory services to consumer and commercial banking customers in its market areas.

Univest Co. of Pennsylvania Company Profile

Univest Corporation of Pennsylvania is the bank holding company of Univest Bank and Trust Co. (the Bank). The Bank is a Pennsylvania state-chartered bank and trust company. The Company’s business segments include Banking, Wealth Management and Insurance. The Banking segment provides financial services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking services and equipment lease financing. The Wealth Management segment offers trust and investment advisory services, guardian and custodian of employee benefits and other trust and brokerage services, as well as a registered investment advisory managing private investment accounts for both individuals and institutions. The Insurance segment includes a full-service insurance brokerage agency offering commercial property and casualty insurance, group life and health coverage, employee benefit solutions, personal insurance lines and human resources consulting.

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