Commerce Union Bancshares (NASDAQ: CUBN) and 1st United Bancorp Inc (Florida) (NASDAQ:FUBC) are both small-cap financials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Dividends

Commerce Union Bancshares pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. 1st United Bancorp Inc (Florida) does not pay a dividend. Commerce Union Bancshares pays out 23.8% of its earnings in the form of a dividend.

Insider and Institutional Ownership

28.0% of Commerce Union Bancshares shares are held by institutional investors. 12.5% of Commerce Union Bancshares shares are held 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.

Profitability

This table compares Commerce Union Bancshares and 1st United Bancorp Inc (Florida)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Commerce Union Bancshares 18.50% 7.12% 0.85%
1st United Bancorp Inc (Florida) N/A N/A N/A

Analyst Recommendations

This is a breakdown of current ratings and price targets for Commerce Union Bancshares and 1st United Bancorp Inc (Florida), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Commerce Union Bancshares 0 1 1 0 2.50
1st United Bancorp Inc (Florida) 0 0 0 0 N/A

Commerce Union Bancshares presently has a consensus price target of $25.25, indicating a potential upside of 2.27%.

Earnings & Valuation

This table compares Commerce Union Bancshares and 1st United Bancorp Inc (Florida)’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Commerce Union Bancshares $44.81 million 4.97 $8.93 million $1.01 24.45
1st United Bancorp Inc (Florida) N/A N/A N/A $0.24 N/A

Commerce Union Bancshares has higher revenue and earnings than 1st United Bancorp Inc (Florida). 1st United Bancorp Inc (Florida) is trading at a lower price-to-earnings ratio than Commerce Union Bancshares, indicating that it is currently the more affordable of the two stocks.

Summary

Commerce Union Bancshares beats 1st United Bancorp Inc (Florida) on 9 of the 10 factors compared between the two stocks.

About Commerce Union Bancshares

Commerce Union Bancshares, Inc. serves as the bank holding company for Reliant Bank. The Company has two segments: Retail Banking and Residential Mortgage Banking. Retail Banking provides deposit and lending services to consumer and business customers within its primary geographic markets. Its customers are serviced through branch locations, automated teller machines (ATMs), online banking and mobile banking. Residential Mortgage Banking originates first lien residential mortgage loans throughout the United States. These loans are typically underwritten to government agency standards and sold to third-party secondary market mortgage investors. Reliant Bank provides a range of traditional banking services throughout the Middle Tennessee Region and the Nashville-Davidson-Murfreesboro-Franklin Metropolitan Statistical Area. Reliant Bank provides a range of commercial banking services for businesses and individuals, including checking, savings accounts, certificates of deposits and loans.

About 1st United Bancorp Inc (Florida)

1st United Bancorp, Inc. (Bancorp) is a financial holding company. 1st United Bank, a Florida state chartered bank, is Bancorp’s wholly owned subsidiary. The Company offers its customers, professionals, high net-worth individuals and small and medium-sized businesses, a variety of traditional loan, deposit and cash management products. As of December 31, 2010, Bancorp operated banking center from 15 locations consisting of four banking centers in Palm Beach County, four banking centers in Broward County, four banking centers in Miami-Dade County, and one banking center each in Sebastian, Vero Beach and Barefoot Bay, Florida. As of December 31, 2010, the total assets of Bancorp were at 1.268 billion and the total loans of the Company were at $847.7 million. In July 2013, 1st United Bancorp Inc completed its acquisition by merger of Enterprise Bancorp Inc (EBI) and its wholly owned subsidiary Enterprise Bank of Florida.

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