Head to Head Analysis: Atlantic Union Bankshares (NASDAQ:AUB) & Ameris Bancorp (NASDAQ:ABCB)

Ameris Bancorp (NASDAQ:ABCB) and Atlantic Union Bankshares (NASDAQ:AUB) are both mid-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Dividends

Ameris Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 1.1%. Atlantic Union Bankshares pays an annual dividend of $1.36 per share and has a dividend yield of 3.8%. Ameris Bancorp pays out 14.1% of its earnings in the form of a dividend. Atlantic Union Bankshares pays out 66.0% 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. Atlantic Union Bankshares has raised its dividend for 14 consecutive years. Atlantic Union Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Ameris Bancorp has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Atlantic Union Bankshares has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Ameris Bancorp and Atlantic Union Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ameris Bancorp	0	1	6	0	2.86
Atlantic Union Bankshares	0	2	3	1	2.83

Ameris Bancorp currently has a consensus price target of $72.14, suggesting a potential downside of 3.05%. Atlantic Union Bankshares has a consensus price target of $38.33, suggesting a potential upside of 6.47%. Given Atlantic Union Bankshares’ higher probable upside, analysts plainly believe Atlantic Union Bankshares is more favorable than Ameris Bancorp.

Valuation and Earnings

This table compares Ameris Bancorp and Atlantic Union Bankshares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ameris Bancorp	$1.13 billion	4.53	$358.68 million	$5.68	13.10
Atlantic Union Bankshares	$1.05 billion	4.88	$209.13 million	$2.06	17.48

Ameris Bancorp has higher revenue and earnings than Atlantic Union Bankshares. Ameris Bancorp is trading at a lower price-to-earnings ratio than Atlantic Union Bankshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ameris Bancorp and Atlantic Union Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ameris Bancorp	21.46%	9.57%	1.32%
Atlantic Union Bankshares	15.53%	8.50%	1.06%

Insider & Institutional Ownership

91.6% of Ameris Bancorp shares are owned by institutional investors. Comparatively, 78.6% of Atlantic Union Bankshares shares are owned by institutional investors. 5.5% of Ameris Bancorp shares are owned by company insiders. Comparatively, 0.9% of Atlantic Union Bankshares shares are owned 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

Ameris Bancorp beats Atlantic Union Bankshares on 12 of the 18 factors compared between the two stocks.

About Ameris Bancorp

Ameris Bancorp operates as the bank holding company for Ameris Bank that provides range of banking services to retail and commercial customers. It operates through five segments: Banking Division, Retail Mortgage Division, Warehouse Lending Division, SBA Division, and Premium Finance Division. The company offers commercial and retail checking, regular interest-bearing savings, money market, individual retirement, and certificates of deposit accounts. It also provides commercial real estate, residential real estate mortgage, agricultural, and commercial and industrial loans; consumer loans, including motor vehicle, home improvement, and home equity loans, as well as loans secured by savings accounts and personal credit lines. In addition, the company originates, administers, and services commercial insurance premium loans, equipment finance loans, and small business administration loans. It operates full service domestic banking offices, and mortgage and loan production offices. The company was founded in 1971 and is headquartered in Atlanta, Georgia.

About Atlantic Union Bankshares

Atlantic Union Bankshares Corporation operates as the bank holding company for Atlantic Union Bank that provides banking and related financial products and services to consumers and businesses in the United States. It operates in two segments, Wholesale Banking and Consumer Banking. The company accepts various deposit products, including checking, savings, time deposit, and money market accounts; certificates of deposit; and other depository services. It also provides loans for commercial, industrial, residential mortgage, and consumer purposes, as well as debit and credit cards. In addition, it provides treasury management and capital market, wealth management, private banking, trust, financial and retirement planning, brokerage, investment management, equipment finance, mortgage banking, and insurance products and services. The company offers products and services through full-service branches and ATMs, as well as through its mobile and internet banking. The company was formerly known as Union Bankshares Corporation and changed its name to Atlantic Union Bankshares Corporation in May 2019. Atlantic Union Bankshares Corporation was founded in 1902 and is headquartered in Glen Allen, Virginia.