Finward Bancorp (NASDAQ:FNWD – Get Free Report) and United Community Banks (NYSE:UCB – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.
Dividends
Finward Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 1.1%. United Community Banks pays an annual dividend of $1.04 per share and has a dividend yield of 2.8%. Finward Bancorp pays out 21.1% of its earnings in the form of a dividend. United Community Banks pays out 88.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Earnings & Valuation
This table compares Finward Bancorp and United Community Banks”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Finward Bancorp | $101.06 million | 1.87 | $8.09 million | $2.27 | 19.19 |
| United Community Banks | $1.09 billion | 4.10 | $328.10 million | $1.18 | 31.32 |
United Community Banks has higher revenue and earnings than Finward Bancorp. Finward Bancorp is trading at a lower price-to-earnings ratio than United Community Banks, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Finward Bancorp and United Community Banks’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Finward Bancorp | 9.65% | 5.68% | 0.48% |
| United Community Banks | 9.06% | 9.66% | 1.23% |
Risk and Volatility
Finward Bancorp has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500. Comparatively, United Community Banks has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.
Institutional and Insider Ownership
26.6% of Finward Bancorp shares are owned by institutional investors. Comparatively, 82.3% of United Community Banks shares are owned by institutional investors. 13.1% of Finward Bancorp shares are owned by insiders. Comparatively, 0.4% of United Community Banks shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations for Finward Bancorp and United Community Banks, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Finward Bancorp | 0 | 1 | 2 | 0 | 2.67 |
| United Community Banks | 0 | 2 | 4 | 2 | 3.00 |
Finward Bancorp presently has a consensus price target of $41.00, indicating a potential downside of 5.88%. United Community Banks has a consensus price target of $40.00, indicating a potential upside of 8.24%. Given United Community Banks’ stronger consensus rating and higher probable upside, analysts clearly believe United Community Banks is more favorable than Finward Bancorp.
Summary
United Community Banks beats Finward Bancorp on 13 of the 17 factors compared between the two stocks.
About Finward Bancorp
Finward Bancorp operates as the holding company for Peoples Bank that provides various banking products and services. The company’s deposit products include non-interest- and interest-bearing demand accounts, savings accounts, money market deposit accounts, certificate accounts, and retirement savings plans. Its loan products portfolio comprises residential mortgage loans that enable borrowers to purchase existing homes, refinance existing homes, or construct new homes; construction loans primarily to individuals and contractors; commercial real estate loans; consumer loans to individuals for personal, household, or family purposes; home equity line of credit; home improvement loans and equity loans; commercial business loans; government loans; and loans to municipalities. The company also offers estate and retirement planning, custodial services, guardianships, IRA accounts, and investment agency accounts, as well as serves as the personal representative of estates, and acts as trustee for revocable and irrevocable trusts. In addition, it provides insurance and annuity investments to wealth management customers; holds real estate properties; and operates as a real estate investment trust. The company was formerly known as NorthWest Indiana Bancorp and changed its name to Finward Bancorp in May 2021. Finward Bancorp was founded in 1916 and is headquartered in Munster, Indiana.
About United Community Banks
United Community Banks, Inc. operates as the financial holding company for United Community Bank that provides financial products and services to commercial, retail, government, education, energy, health care, and real estate sectors. The company accepts various deposit products, including checking, savings, money market, and other deposit accounts. It also offers lending services, including real estate, consumer, and commercial loans, to individuals, small businesses, mid-sized commercial businesses, and non-profit organizations, as well as secured and unsecured, and mortgage loans. In addition, the company originate loans partially guaranteed by the SBA and USDA loan programs. Further, it provides wealth management services comprising financial planning, customized portfolio management, and investment advice; trust services to manage fiduciary assets; non-deposit investment products; and insurance products, including life insurance, long-term care insurance, and tax-deferred annuities, as well as invests in residential and commercial mortgage-backed securities, asset-backed securities, the U.S. treasury, the U.S. agency, and municipal obligations. Additionally, the company offers reinsurance on a property insurance contract; insurance agency services; brokerage services; and payment processing, merchant, wire transfer, private banking, and other related financial services. It operates through a network of 171 branches in Florida, Georgia, North Carolina, South Carolina, and Tennessee. United Community Banks, Inc. was founded in 1950 and is headquartered in Blairsville, Georgia.
Receive News & Ratings for Finward Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Finward Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.
