United Bankshares (NASDAQ:UBSI – Get Free Report) and Hanmi Financial (NASDAQ:HAFC – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.
Institutional and Insider Ownership
70.8% of United Bankshares shares are owned by institutional investors. Comparatively, 88.7% of Hanmi Financial shares are owned by institutional investors. 3.2% of United Bankshares shares are owned by insiders. Comparatively, 2.1% of Hanmi Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Dividends
United Bankshares pays an annual dividend of $1.52 per share and has a dividend yield of 3.2%. Hanmi Financial pays an annual dividend of $1.12 per share and has a dividend yield of 3.5%. United Bankshares pays out 41.4% of its earnings in the form of a dividend. Hanmi Financial pays out 37.7% 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 and Hanmi Financial has raised its dividend for 1 consecutive years. Hanmi Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United Bankshares | $1.82 billion | 3.53 | $464.60 million | $3.67 | 12.87 |
| Hanmi Financial | $444.90 million | 2.12 | $76.09 million | $2.97 | 10.71 |
United Bankshares has higher revenue and earnings than Hanmi Financial. Hanmi Financial 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 & Risk
United Bankshares has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Hanmi Financial has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for United Bankshares and Hanmi Financial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Bankshares | 0 | 4 | 3 | 0 | 2.43 |
| Hanmi Financial | 0 | 4 | 2 | 0 | 2.33 |
United Bankshares presently has a consensus price target of $47.80, indicating a potential upside of 1.23%. Hanmi Financial has a consensus price target of $33.00, indicating a potential upside of 3.77%. Given Hanmi Financial’s higher possible upside, analysts plainly believe Hanmi Financial is more favorable than United Bankshares.
Profitability
This table compares United Bankshares and Hanmi Financial’s 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% |
| Hanmi Financial | 19.82% | 11.20% | 1.13% |
Summary
United Bankshares beats Hanmi Financial on 11 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 Hanmi Financial
Hanmi Financial Corporation operates as the holding company for Hanmi Bank that provides business banking products and services in the United States. It offers various deposit products, including noninterest-bearing checking accounts, savings accounts, negotiable order of withdrawal accounts, money market accounts, and certificates of deposit. The company also provides real estate loans, such as commercial property, construction, and residential property loans; and commercial and industrial loans, such as commercial term loans and commercial lines of credit; and international finance and trade services and products, such as letters of credit, and import and export financing. In addition, it offers small business administration loans for business purposes, which comprise owner-occupied commercial real estate, business acquisitions, start-ups, franchise financing, working capital, improvements and renovations, inventory and equipment, and debt-refinancing, as well as equipment lease financing. The company was founded in 1982 and is headquartered in Los Angeles, California.
Receive News & Ratings for United Bankshares Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for United Bankshares and related companies with MarketBeat.com's FREE daily email newsletter.
