Reviewing NBT Bancorp (NASDAQ:NBTB) and University Bancorp (OTCMKTS:UNIB)

NBT Bancorp (NASDAQ:NBTB) and University Bancorp (OTCMKTS:UNIB) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Risk & Volatility

NBT Bancorp has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, University Bancorp has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500.

Dividends

NBT Bancorp pays an annual dividend of $1.48 per share and has a dividend yield of 3.2%. University Bancorp pays an annual dividend of $0.30 per share and has a dividend yield of 1.4%. NBT Bancorp pays out 42.2% of its earnings in the form of a dividend. NBT Bancorp has increased its dividend for 12 consecutive years. NBT Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares NBT Bancorp and University Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NBT Bancorp	$906.48 million	2.65	$169.24 million	$3.51	13.17
University Bancorp	$137.51 million	0.81	$9.02 million	N/A	N/A

NBT Bancorp has higher revenue and earnings than University Bancorp.

Analyst Recommendations

This is a breakdown of current ratings and target prices for NBT Bancorp and University Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NBT Bancorp	0	3	2	1	2.67
University Bancorp	0	0	0	0	0.00

NBT Bancorp presently has a consensus target price of $49.50, indicating a potential upside of 7.05%. Given NBT Bancorp’s stronger consensus rating and higher possible upside, equities research analysts plainly believe NBT Bancorp is more favorable than University Bancorp.

Insider and Institutional Ownership

58.5% of NBT Bancorp shares are owned by institutional investors. 3.0% of NBT Bancorp shares are owned by company insiders. Comparatively, 63.7% of University Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares NBT Bancorp and University Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NBT Bancorp	19.59%	11.06%	1.28%
University Bancorp	N/A	N/A	N/A

Summary

NBT Bancorp beats University Bancorp on 14 of the 16 factors compared between the two stocks.

About NBT Bancorp

NBT Bancorp Inc., a financial holding company, provides commercial banking, retail banking, and wealth management services. Its deposit products include demand deposit, savings, negotiable order of withdrawal, money market deposit, and certificate of deposit accounts. The company's loan portfolio comprises indirect and direct consumer, home equity, mortgages, business banking loans, and commercial loans; commercial and industrial, commercial real estate, agricultural, and commercial construction loans; and residential real estate loans. It also provides trust and investment services; financial planning and life insurance services; and retirement plan administration and recordkeeping services. In addition, the company offers insurance products comprising personal property and casualty, business liability, and commercial insurance, as well as other products and services through 24-hour online, mobile, and telephone channels that enable customers to check balances, make deposits, transfer funds, pay bills, access statements, apply for loans, and access various other products and services. Further, it operates as a property management and passive investment company, as well as investment advisor that provides investment management and financial consulting services. The company operates in upstate New York, northeastern Pennsylvania, southern New Hampshire, western Massachusetts, Vermont, southern Maine, and central and northwestern Connecticut. NBT Bancorp Inc. was founded in 1856 and is headquartered in Norwich, New York.

About University Bancorp

University Bancorp, Inc. operates as the bank holding company for University Bank that provides various personal, business, and community banking services in the United States. It offers checking, NOW, savings, money market, time deposit, and certificates of deposit accounts. The company's consumer loans include home equity, short term, automobile, personal, and recreational vehicle loans, as well as home equity lines of credits; SBA, commercial real estate, equipment, home improvement, and other instalment loans; and non-profit loans, as well as working capital lines of credit. In addition, the company provides foreign currency exchange; reverse mortgage; online banking and bill pay; online reorder checks; wire transfer; and courier services, as well as credit card and ATM services. Further, it offers life, health, property, and casualty insurance products, as well as investment products, including annuities. University Bancorp, Inc. was founded in 1890 and is based in Ann Arbor, Michigan.