Financial Analysis: Summit State Bank (NASDAQ:SSBI) and United Security Bancshares (NASDAQ:UBFO)

Volatility & Risk

Summit State Bank has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500. Comparatively, United Security Bancshares has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Earnings and Valuation

This table compares Summit State Bank and United Security Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summit State Bank	$62.91 million	1.29	-$3.66 million	($0.16)	-74.75
United Security Bancshares	$65.46 million	2.49	$14.78 million	$0.66	14.14

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

Profitability

This table compares Summit State Bank and United Security Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summit State Bank	-1.70%	N/A	N/A
United Security Bancshares	17.07%	8.43%	0.92%

Insider and Institutional Ownership

30.9% of United Security Bancshares shares are held by institutional investors. 22.1% of United Security Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

United Security Bancshares beats Summit State Bank on 11 of the 11 factors compared between the two stocks.

About Summit State Bank

Summit State Bank engages in providing an array of financial services to small and medium-sized businesses, their owners and employees, entrepreneurs, high net worth families, foundations, estates, and individual consumers. It specializes in business services, personal accounts, nonprofit programs, and mobile banking ranging from lending, checking, merchant, eBanking, automated teller machines, equity loans, and others. The company was founded on December 20, 1982 and is headquartered in Santa Rosa, CA.

About United Security Bancshares

United Security Bancshares operates as the bank holding company for United Security Bank, a state-chartered bank that provides a range of commercial banking services to the business and professional community, and individuals in California. The company accepts various deposit products, including personal and business checking accounts, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit. It also provides real estate mortgage, commercial and industrial, real estate construction and development, and consumer loans, as well as agricultural, installment, and student loans. In addition, the company offers online and mobile banking, safe deposit boxes, wire transfers, payroll direct deposit, cashier's check, cash management, and foreign draft services, as well as interactive teller machines; and person-to-person and bank-to-bank transfers for consumer customers. United Security Bancshares was founded in 1987 and is headquartered in Fresno, California.