Reviewing United Bankshares (NASDAQ:UBSI) & Commonwealth Business Bank (OTCMKTS:CBBI)

United Bankshares (NASDAQ:UBSI) and Commonwealth Business Bank (OTCMKTS:CBBI) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Profitability

This table compares United Bankshares and Commonwealth Business Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Bankshares	27.45%	9.26%	1.51%
Commonwealth Business Bank	15.52%	N/A	N/A

Dividends

United Bankshares pays an annual dividend of $1.52 per share and has a dividend yield of 3.3%. Commonwealth Business Bank pays an annual dividend of $0.50 per share and has a dividend yield of 3.8%. United Bankshares pays out 42.6% of its earnings in the form of a dividend. Commonwealth Business Bank pays out 27.9% 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. Commonwealth Business Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares United Bankshares and Commonwealth Business Bank”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	$1.26 billion	5.06	$464.60 million	$3.57	12.99
Commonwealth Business Bank	$120.93 million	1.15	$22.43 million	$1.79	7.36

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

Volatility and Risk

United Bankshares has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Commonwealth Business Bank has a beta of 0.14, suggesting that its stock price is 86% less volatile than the S&P 500.

Insider and Institutional Ownership

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

Analyst Ratings

This is a breakdown of current ratings for United Bankshares and Commonwealth Business Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Bankshares	0	4	3	0	2.43
Commonwealth Business Bank	0	0	0	0	0.00

United Bankshares presently has a consensus price target of $46.60, suggesting a potential upside of 0.47%. Given United Bankshares’ stronger consensus rating and higher probable upside, equities research analysts plainly believe United Bankshares is more favorable than Commonwealth Business Bank.

Summary

United Bankshares beats Commonwealth Business Bank on 15 of the 17 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 Commonwealth Business Bank

CBB Bancorp, Inc. operates as the holding company for Commonwealth Business Bank that provides various commercial banking products and services to individuals and businesses in the United States. It offers checking, savings, money market, and certification of deposit accounts; SBA lending; business lines of credit; business term loans; business and commercial property loans; construction loans; and credit cards. The company also provides treasury management, and mobile and online banking services, as well as title and escrow services. In addition, it engages in investing activities; and offers trade finance services, including commercial letters of credit, standby letters of credit, and documentary collection services. The company offers its services through full-service and limited-service branches in Southern California, Dallas, Texas and Honolulu, and Hawaii; and loan production offices in the states of Colorado, Georgia, Texas, and Washington. CBB Bancorp, Inc. was founded in 2005 and is headquartered in Los Angeles, California.