Head-To-Head Comparison: United Bankshares (NASDAQ:UBSI) versus Fvcbankcorp (NASDAQ:FVCB)

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

Dividends

United Bankshares pays an annual dividend of $1.52 per share and has a dividend yield of 3.7%. Fvcbankcorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.6%. United Bankshares pays out 46.5% of its earnings in the form of a dividend. Fvcbankcorp pays out 19.8% 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 increased 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.

Institutional and Insider Ownership

70.8% of United Bankshares shares are owned by institutional investors. Comparatively, 43.6% of Fvcbankcorp shares are owned by institutional investors. 3.7% of United Bankshares shares are owned by company insiders. Comparatively, 10.9% of Fvcbankcorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares United Bankshares and Fvcbankcorp”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	3.12	$464.60 million	$3.27	12.47
Fvcbankcorp	$66.16 million	4.08	$22.06 million	$1.21	12.43

United Bankshares has higher revenue and earnings than Fvcbankcorp. Fvcbankcorp 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 Ratings

This is a breakdown of current recommendations for United Bankshares and Fvcbankcorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Bankshares	0	3	2	0	2.40
Fvcbankcorp	0	1	2	0	2.67

United Bankshares presently has a consensus price target of $44.67, suggesting a potential upside of 9.55%. Fvcbankcorp has a consensus price target of $18.00, suggesting a potential upside of 19.68%. Given Fvcbankcorp’s stronger consensus rating and higher possible upside, analysts plainly believe Fvcbankcorp is more favorable than United Bankshares.

Risk and Volatility

United Bankshares has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Fvcbankcorp has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Profitability

This table compares United Bankshares and Fvcbankcorp’s 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%
Fvcbankcorp	18.08%	8.92%	0.97%

Summary

United Bankshares beats Fvcbankcorp on 10 of the 16 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 Fvcbankcorp

FVCBankcorp, Inc. operates as the bank holding company for FVCbank that provides various banking products and services in Virginia. It offers deposit products, including interest and noninterest-bearing transaction accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides commercial real estate loans; commercial construction loans; commercial loans for various business purposes, such as for working capital, equipment purchases, lines of credit, and government contract financing; small business administration loans; asset-based loans and accounts receivable financing; home equity loans; and consumer loans. In addition, it offers business and consumer credit cards; merchant services; business insurance products; and online banking, remote deposit, and mobile banking services. The company serves commercial businesses, nonprofit organizations, professional service entities, and their respective owners and employees located in the greater Washington, D.C., and Baltimore metropolitan areas. It operates branch offices in Arlington, Virginia; the independent city of Manassas, Virginia; Reston, Fairfax County, Virginia; Springfield, Fairfax County in Virginia; and Montgomery County and Baltimore in Maryland, and Washington, D.C. FVCBankcorp, Inc. was founded in 2007 and is headquartered in Fairfax, Virginia.