Reviewing Citizens Bancshares (OTCMKTS:CZBS) and United Bankshares (NASDAQ:UBSI)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Citizens Bancshares	N/A	N/A	N/A
United Bankshares	27.45%	9.26%	1.51%

Dividends

Citizens Bancshares pays an annual dividend of $1.20 per share and has a dividend yield of 2.3%. United Bankshares pays an annual dividend of $1.52 per share and has a dividend yield of 3.5%. United Bankshares pays out 42.6% of its earnings in the form of a dividend. 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.

Analyst Recommendations

This is a breakdown of current ratings for Citizens Bancshares and United Bankshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Citizens Bancshares	0	0	0	0	0.00
United Bankshares	0	3	3	0	2.50

United Bankshares has a consensus target price of $45.75, suggesting a potential upside of 5.59%. Given United Bankshares’ stronger consensus rating and higher probable upside, analysts clearly believe United Bankshares is more favorable than Citizens Bancshares.

Institutional and Insider Ownership

70.8% of United Bankshares shares are held by institutional investors. 10.2% of Citizens Bancshares shares are held by insiders. Comparatively, 3.2% of United Bankshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Citizens Bancshares has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500. Comparatively, United Bankshares has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Valuation & Earnings

This table compares Citizens Bancshares and United Bankshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Citizens Bancshares	$44.60 million	2.04	$10.59 million	N/A	N/A
United Bankshares	$1.82 billion	3.28	$464.60 million	$3.57	12.14

United Bankshares has higher revenue and earnings than Citizens Bancshares.

Summary

United Bankshares beats Citizens Bancshares on 13 of the 15 factors compared between the two stocks.

About Citizens Bancshares

Citizens Bancshares Corporation operates as the holding company for Citizens Trust Bank that provides various commercial banking services to individual and corporate customers. The company offers checking and savings accounts; and demand and money market deposits. Its loan products include commercial, financial, and agricultural loans; loans secured by personal property, such as automobiles, marketable securities, and other titled recreational vehicles and motorcycles, as well as unsecured consumer debt; commercial real estate loans; single-family residential loans; and construction and development loans. The company also offers investment accounts and certificate of deposit account registry services. In addition, it provides merchant services, which include point of sale terminal, credit and debit card processing, electronic benefits transfer, gift card, and Internet shopping cart services; cash management services; and credit cards. Further, the company offers online and mobile banking, as well as check reorder services. Citizens Bancshares Corporation was founded in 1921 and is headquartered in Atlanta, Georgia.

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.