Head to Head Contrast: Spirit of Texas Bancshares (NASDAQ:STXB) vs. United Bancorp (NASDAQ:UBCP)

Spirit of Texas Bancshares (NASDAQ:STXBGet Rating) and United Bancorp (NASDAQ:UBCPGet Rating) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Profitability

This table compares Spirit of Texas Bancshares and United Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spirit of Texas Bancshares 30.12% 11.21% 1.35%
United Bancorp 30.59% 13.21% 1.28%

Analyst Recommendations

This is a summary of current ratings and price targets for Spirit of Texas Bancshares and United Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spirit of Texas Bancshares 0 2 1 0 2.33
United Bancorp 0 0 0 0 N/A

Spirit of Texas Bancshares currently has a consensus price target of $30.67, indicating a potential upside of 20.03%. Given Spirit of Texas Bancshares’ higher possible upside, equities analysts clearly believe Spirit of Texas Bancshares is more favorable than United Bancorp.

Dividends

Spirit of Texas Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 1.9%. United Bancorp pays an annual dividend of $0.61 per share and has a dividend yield of 3.5%. Spirit of Texas Bancshares pays out 20.2% of its earnings in the form of a dividend. United Bancorp pays out 38.1% 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. Spirit of Texas Bancshares has increased its dividend for 1 consecutive years and United Bancorp has increased its dividend for 10 consecutive years. United Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Spirit of Texas Bancshares has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, United Bancorp has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.

Earnings & Valuation

This table compares Spirit of Texas Bancshares and United Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Spirit of Texas Bancshares $139.60 million 3.19 $42.05 million $2.38 10.74
United Bancorp $30.41 million 3.44 $9.45 million $1.60 11.01

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

Insider and Institutional Ownership

39.9% of Spirit of Texas Bancshares shares are held by institutional investors. Comparatively, 14.8% of United Bancorp shares are held by institutional investors. 25.2% of Spirit of Texas Bancshares shares are held by company insiders. Comparatively, 12.3% of United Bancorp shares are held 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.

Summary

Spirit of Texas Bancshares beats United Bancorp on 10 of the 16 factors compared between the two stocks.

About Spirit of Texas Bancshares (Get Rating)

Spirit of Texas Bancshares, Inc. operates as the bank holding company for Spirit of Texas Bank SSB that provides various commercial and retail banking services. It offers checking, money market, savings, and individual retirement accounts, as well as various certificates of deposit. The company also provides commercial and industrial loans; 1-4 single family residential real estate loans; construction, land, and development loans; commercial real estate loans, such as owner and nonowner-occupied commercial real estate loans, multifamily loans, and farmland loans; consumer loans and leases; and municipal and other loans. In addition, it offers a range of ancillary banking services, including treasury management services, consumer and commercial online banking services, mobile applications, safe deposit boxes, wire transfer services, debit cards, and ATM access. Further, it provides credit card processing and co-branded credit card services; and invests in U.S. Treasury bills and notes, as well as in securities of federally sponsored agencies, such as Federal Home Loan Bank bonds. As of February 26, 2022, it had 35 locations in the Houston, Dallas/Fort Worth, Bryan/College Station, Austin, San Antonio-New Braunfels, Corpus Christi, Austin, and Tyler metropolitan areas, as well as offices in North Central and South Texas. The company serves individuals, professionals, small and medium-sized businesses, and commercial companies. Spirit of Texas Bancshares, Inc. was incorporated in 2008 and is headquartered in Conroe, Texas.

About United Bancorp (Get Rating)

United Bancorp, Inc. operates as the bank holding company for Unified Bank that provides commercial and retail banking services in Ohio. It accepts demand, savings, and time deposits, as well as grants commercial, commercial and residential real estate, and consumer loans. As of December 31, 2021, the company operated through a network of banking offices in Athens, Belmont, Carroll, Fairfield, Harrison, Jefferson, and Tuscarawas Counties in Ohio, as well as Marshall and Ohio Counties in West Virginia and the surrounding localities; and a loan production office in Wheeling, West Virginia. United Bancorp, Inc. was founded in 1902 and is headquartered in Martins Ferry, Ohio.

Receive News & Ratings for Spirit of Texas Bancshares Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Spirit of Texas Bancshares and related companies with MarketBeat.com's FREE daily email newsletter.