Head to Head Survey: Chesapeake Financial Shares (OTCMKTS:CPKF) and United Bankshares (NASDAQ:UBSI)

Chesapeake Financial Shares (OTCMKTS:CPKFGet Free Report) and United Bankshares (NASDAQ:UBSIGet Free Report) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Chesapeake Financial Shares and United Bankshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chesapeake Financial Shares 0 0 0 0 0.00
United Bankshares 0 5 0 0 2.00

United Bankshares has a consensus target price of $40.50, indicating a potential upside of 9.28%. Given United Bankshares’ stronger consensus rating and higher possible upside, analysts plainly believe United Bankshares is more favorable than Chesapeake Financial Shares.

Institutional & Insider Ownership

3.7% of Chesapeake Financial Shares shares are held by institutional investors. Comparatively, 70.8% of United Bankshares shares are held by institutional investors. 39.5% of Chesapeake Financial Shares shares are held by company insiders. Comparatively, 3.7% of United Bankshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Chesapeake Financial Shares and United Bankshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chesapeake Financial Shares 4.57% 10.29% 0.74%
United Bankshares 23.14% 7.65% 1.26%

Volatility & Risk

Chesapeake Financial Shares has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500. Comparatively, United Bankshares has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Valuation and Earnings

This table compares Chesapeake Financial Shares and United Bankshares”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chesapeake Financial Shares $99.39 million 1.05 $11.43 million $0.92 24.18
United Bankshares $1.63 billion 3.23 $373.00 million $2.83 13.10

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

Dividends

Chesapeake Financial Shares pays an annual dividend of $0.64 per share and has a dividend yield of 2.9%. United Bankshares pays an annual dividend of $1.48 per share and has a dividend yield of 4.0%. Chesapeake Financial Shares pays out 69.6% of its earnings in the form of a dividend. United Bankshares pays out 52.3% 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. United Bankshares has raised its dividend for 26 consecutive years. United Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

United Bankshares beats Chesapeake Financial Shares on 13 of the 16 factors compared between the two stocks.

About Chesapeake Financial Shares

(Get Free Report)

Chesapeake Financial Shares, Inc. operates as the bank holding company for Chesapeake Bank that provides various banking products and services for individuals and businesses in the United States. The company accepts interest and noninterest checking, savings, and money market accounts; and variable-rate and fixed-term money market accounts, as well as certificates of deposit. It also offers mortgage, and single-family residential and residential construction loans; commercial loans, which include owner-occupied commercial development, retail, builders/contractors, medical, service and professional, hospitality, nonprofits, marine industry, and agricultural and seafood loans; and consumer and other loans. In addition, the company provides merchant processing, accounts receivable financing, wealth management and trust, and mortgage banking services, as well as cash management services. The company was founded in 1900 and is based in Kilmarnock, Virginia.

About United Bankshares

(Get Free Report)

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.

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