SmartFinancial (NASDAQ:SMBK) and United Bancshares (NASDAQ:UBOH) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for SmartFinancial and United Bancshares, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
SmartFinancial | 0 | 0 | 2 | 0 | 3.00 |
United Bancshares | 0 | 0 | 0 | 0 | N/A |
SmartFinancial currently has a consensus target price of $22.00, indicating a potential downside of 0.27%. Given SmartFinancial's higher probable upside, research analysts plainly believe SmartFinancial is more favorable than United Bancshares.
Institutional & Insider Ownership
40.5% of SmartFinancial shares are held by institutional investors. Comparatively, 22.5% of United Bancshares shares are held by institutional investors. 8.9% of SmartFinancial shares are held by insiders. Comparatively, 7.2% of United Bancshares shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares SmartFinancial and United Bancshares' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
SmartFinancial | 17.20% | 7.34% | 0.82% |
United Bancshares | 24.16% | 15.85% | 1.70% |
Volatility and Risk
SmartFinancial has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, United Bancshares has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.
Dividends
SmartFinancial pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. United Bancshares pays an annual dividend of $0.64 per share and has a dividend yield of 2.4%. SmartFinancial pays out 14.3% of its earnings in the form of a dividend. SmartFinancial has increased its dividend for 1 consecutive years and United Bancshares has increased its dividend for 1 consecutive years.
Earnings and Valuation
This table compares SmartFinancial and United Bancshares' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
SmartFinancial | $123.77 million | 2.69 | $26.55 million | $1.68 | 13.13 |
United Bancshares | $52.87 million | 1.63 | $10.66 million | N/A | N/A |
SmartFinancial has higher revenue and earnings than United Bancshares.
Summary
SmartFinancial beats United Bancshares on 8 of the 14 factors compared between the two stocks.