Head to Head Contrast: Shore Bancshares (NASDAQ:SHBI) & United Bankshares (NASDAQ:UBSI)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
United Bankshares	27.97%	9.39%	1.53%
Shore Bancshares	19.15%	12.11%	1.16%

Volatility and Risk

United Bankshares has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Shore Bancshares has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Earnings and Valuation

This table compares United Bankshares and Shore Bancshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Bankshares	$1.82 billion	3.58	$464.60 million	$3.67	13.03
Shore Bancshares	$237.01 million	3.33	$59.51 million	$1.98	11.93

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

Dividends

United Bankshares pays an annual dividend of $1.52 per share and has a dividend yield of 3.2%. Shore Bancshares pays an annual dividend of $0.56 per share and has a dividend yield of 2.4%. United Bankshares pays out 41.4% of its earnings in the form of a dividend. Shore Bancshares pays out 28.3% 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.

Institutional and Insider Ownership

70.8% of United Bankshares shares are owned by institutional investors. Comparatively, 59.8% of Shore Bancshares shares are owned by institutional investors. 3.2% of United Bankshares shares are owned by company insiders. Comparatively, 8.7% of Shore Bancshares 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for United Bankshares and Shore Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Bankshares	0	4	3	0	2.43
Shore Bancshares	0	2	3	0	2.60

United Bankshares presently has a consensus target price of $47.80, suggesting a potential downside of 0.06%. Shore Bancshares has a consensus target price of $26.00, suggesting a potential upside of 10.03%. Given Shore Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe Shore Bancshares is more favorable than United Bankshares.

Summary

United Bankshares beats Shore Bancshares 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 Shore Bancshares

Shore Bancshares, Inc. operates as a bank holding company for the Shore United Bank, N.A. that provides various commercial and consumer banking products and services to individuals, businesses, and other organizations. It offers checking, savings, overnight investment sweep, and money market accounts; and regular and IRA certificates of deposit, as well as CDARS programs and cash management services. The company also provides commercial loans, such as secured and unsecured loans, working capital loans, lines of credit, term loans, accounts receivable financing, real estate acquisition and development loans, construction loans, and letters of credit; residential real estate construction loans; residential mortgage loans; and loans to consumers, including home equity, automobile, installment, home improvement, and personal lines of credit, as well as other consumer financing products. In addition, it offers trust, asset management, and financial planning services; treasury management services, such as merchant card processing, remote deposit capture, and ACH origination, as well as telephone, mobile, and Internet banking services; safe deposit boxes; debit and credit cards; and automatic teller machine services. Shore Bancshares, Inc. was founded in 1876 and is headquartered in Easton, Maryland.