Critical Comparison: United Bankshares (NASDAQ:UBSI) versus First National Bank Alaska (OTCMKTS:FBAK)

United Bankshares (NASDAQ:UBSI) and First National Bank Alaska (OTCMKTS:FBAK) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Dividends

United Bankshares pays an annual dividend of $1.48 per share and has a dividend yield of 4.4%. First National Bank Alaska pays an annual dividend of $16.00 per share and has a dividend yield of 6.9%. United Bankshares pays out 54.0% of its earnings in the form of a dividend. First National Bank Alaska pays out 75.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. United Bankshares has increased its dividend for 26 consecutive years.

Earnings & Valuation

This table compares United Bankshares and First National Bank Alaska”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Bankshares	$1.03 billion	4.66	$373.00 million	$2.74	12.20
First National Bank Alaska	$87.73 million	8.34	$60.01 million	$21.17	10.91

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

Institutional and Insider Ownership

70.8% of United Bankshares shares are owned by institutional investors. 3.7% of United Bankshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares United Bankshares and First National Bank Alaska’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Bankshares	22.94%	7.60%	1.24%
First National Bank Alaska	N/A	13.70%	1.11%

Risk and Volatility

United Bankshares has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, First National Bank Alaska has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for United Bankshares and First National Bank Alaska, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Bankshares	0	4	0	0	2.00
First National Bank Alaska	0	0	0	0	0.00

United Bankshares currently has a consensus target price of $41.88, suggesting a potential upside of 25.22%. Given United Bankshares’ stronger consensus rating and higher probable upside, analysts clearly believe United Bankshares is more favorable than First National Bank Alaska.

Summary

United Bankshares beats First National Bank Alaska on 12 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 First National Bank Alaska

First National Bank Alaska, a commercial bank, provides various banking products and services for business, industry, and individual customers primarily in Alaska. The company offers savings and checking accounts; money market deposits; safe deposit services; certificates of deposit; individual retirement accounts; and personal, home equity, and construction loans, as well as loans for stability and growth. It also provides investment, treasury, trust, and wealth management services; and escrow and contract collection, and bankcard services. In addition, the company offers debit and credit cards, online and mobile banking, fraud prevention, and convenience banking services. First National Bank Alaska was founded in 1922 and is headquartered in Anchorage, Alaska.