Analyzing United Bankshares (NASDAQ:UBSI) & Benchmark Bankshares (OTCMKTS:BMBN)

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

Insider & Institutional Ownership

70.8% of United Bankshares shares are held by institutional investors. Comparatively, 3.2% of Benchmark Bankshares shares are held by institutional investors. 3.5% of United Bankshares shares are held by company insiders. Comparatively, 14.0% of Benchmark Bankshares shares are held by company 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.

Valuation and Earnings

This table compares United Bankshares and Benchmark Bankshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Bankshares	$1.82 billion	3.40	$464.60 million	$3.27	13.48
Benchmark Bankshares	$83.37 million	2.00	$19.84 million	$4.46	8.35

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for United Bankshares and Benchmark Bankshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Bankshares	0	2	2	1	2.80
Benchmark Bankshares	0	0	0	0	0.00

United Bankshares presently has a consensus price target of $44.67, suggesting a potential upside of 1.35%. Given United Bankshares’ stronger consensus rating and higher probable upside, equities research analysts plainly believe United Bankshares is more favorable than Benchmark Bankshares.

Volatility & Risk

United Bankshares has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Benchmark Bankshares has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500.

Profitability

This table compares United Bankshares and Benchmark Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Bankshares	25.51%	8.60%	1.40%
Benchmark Bankshares	23.80%	N/A	N/A

Dividends

United Bankshares pays an annual dividend of $1.52 per share and has a dividend yield of 3.4%. Benchmark Bankshares pays an annual dividend of $0.96 per share and has a dividend yield of 2.6%. United Bankshares pays out 46.5% of its earnings in the form of a dividend. Benchmark Bankshares pays out 21.5% 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 raised 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.

Summary

United Bankshares beats Benchmark Bankshares on 15 of the 18 factors compared between the two stocks.

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.

About Benchmark Bankshares

Benchmark Bankshares, Inc. operates as the holding company for Benchmark Community Bank that provides various banking products and services in the United States. The company accepts various deposits, such as checking, saving, commercial services, and youth accounts. Its loan products include personal, mortgage, other real estate, business, auto, and student loans. The company also offers credit and debit cards; wealth management services comprising financial solutions, financial and retirement planning, and portfolio management, as well as estate, charitable giving, and trust services; and reorder checks, safe deposit boxes, wire transfers, bill pay, and internet and mobile banking services. The company was founded in 1971 and is based in Kenbridge, Virginia.