University Bancorp (OTCMKTS:UNIB) vs. Washington Trust Bancorp (NASDAQ:WASH) Head-To-Head Comparison

University Bancorp (OTCMKTS:UNIB) and Washington Trust Bancorp (NASDAQ:WASH) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Dividends

University Bancorp pays an annual dividend of $0.30 per share and has a dividend yield of 1.9%. Washington Trust Bancorp pays an annual dividend of $2.24 per share and has a dividend yield of 7.5%. Washington Trust Bancorp pays out -148.3% of its earnings in the form of a dividend.

Risk & Volatility

University Bancorp has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500. Comparatively, Washington Trust Bancorp has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Profitability

This table compares University Bancorp and Washington Trust Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
University Bancorp	N/A	N/A	N/A
Washington Trust Bancorp	-6.10%	9.05%	0.68%

Earnings & Valuation

This table compares University Bancorp and Washington Trust Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
University Bancorp	$125.26 million	0.66	$10.47 million	N/A	N/A
Washington Trust Bancorp	$403.73 million	1.42	-$28.06 million	($1.51)	-19.86

University Bancorp has higher earnings, but lower revenue than Washington Trust Bancorp.

Analyst Ratings

This is a summary of current ratings and target prices for University Bancorp and Washington Trust Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
University Bancorp	0	0	0	0	0.00
Washington Trust Bancorp	1	2	0	1	2.25

Washington Trust Bancorp has a consensus price target of $29.00, indicating a potential downside of 3.30%. Given Washington Trust Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Washington Trust Bancorp is more favorable than University Bancorp.

Insider and Institutional Ownership

65.8% of Washington Trust Bancorp shares are owned by institutional investors. 63.7% of University Bancorp shares are owned by company insiders. Comparatively, 1.1% of Washington Trust Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Washington Trust Bancorp beats University Bancorp on 11 of the 14 factors compared between the two stocks.

About University Bancorp

University Bancorp, Inc. operates as the bank holding company for University Bank that provides various personal, business, and community banking services in the United States. It offers checking, NOW, savings, money market, time deposit, and certificates of deposit accounts. The company's consumer loans include home equity, short term, automobile, personal, and recreational vehicle loans, as well as home equity lines of credits; SBA, commercial real estate, equipment, home improvement, and other instalment loans; and non-profit loans, as well as working capital lines of credit. In addition, the company provides foreign currency exchange; reverse mortgage; online banking and bill pay; online reorder checks; wire transfer; and courier services, as well as credit card and ATM services. Further, it offers life, health, property, and casualty insurance products, as well as investment products, including annuities. University Bancorp, Inc. was founded in 1890 and is based in Ann Arbor, Michigan.

About Washington Trust Bancorp

Washington Trust Bancorp, Inc. operates as the bank holding company for The Washington Trust Company, of Westerly that provides various banking and financial services to individuals and businesses. The company operates in two segments, Commercial Banking and Wealth Management Services. The Commercial Banking segment offers deposit accounts, including interest-bearing and noninterest-bearing demand deposits, NOW and savings accounts, money market and retirement deposit accounts, and time deposits; various commercial and retail lending products, such as commercial real estate loans, including commercial mortgages, and construction and development loans; commercial and industrial loans comprising working capital, equipment financing, and financing for other business-related purposes; residential real estate loans that consist of mortgage and homeowner construction loans; and consumer loans comprising home equity loans and lines of credit, personal installment loans, and loans to individuals secured by general aviation aircraft. This segment also provides debit cards; automated teller machines (ATMs); telephone banking, internet banking, mobile banking, remote deposit capture, and other cash management services; and investment portfolio and wholesale funding services. The Wealth Management Services segment offers investment management; financial planning; personal trust and estate services, such as trustee, personal representative, custodian, and guardian; and settlement of decedents’ estates, as well as institutional trust services comprising custody and fiduciary services for personal and institutional clients. Washington Trust Bancorp, Inc. was founded in 1800 and is headquartered in Westerly, Rhode Island.