First Us Bancsh (NASDAQ:FUSB) versus United Community Banks (NYSE:UCB) Financial Contrast

First Us Bancsh (NASDAQ:FUSB) and United Community Banks (NYSE:UCB) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Dividends

First Us Bancsh pays an annual dividend of $0.28 per share and has a dividend yield of 2.3%. United Community Banks pays an annual dividend of $1.00 per share and has a dividend yield of 3.3%. First Us Bancsh pays out 28.9% of its earnings in the form of a dividend. United Community Banks pays out 45.5% 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. First Us Bancsh has increased its dividend for 3 consecutive years.

Risk & Volatility

First Us Bancsh has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, United Community Banks has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for First Us Bancsh and United Community Banks, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Us Bancsh	0	1	0	0	2.00
United Community Banks	0	5	3	0	2.38

United Community Banks has a consensus price target of $34.57, suggesting a potential upside of 15.39%. Given United Community Banks’ stronger consensus rating and higher probable upside, analysts plainly believe United Community Banks is more favorable than First Us Bancsh.

Valuation & Earnings

This table compares First Us Bancsh and United Community Banks”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Us Bancsh	$61.84 million	1.15	$8.17 million	$0.97	12.70
United Community Banks	$1.50 billion	2.42	$252.40 million	$2.20	13.62

United Community Banks has higher revenue and earnings than First Us Bancsh. First Us Bancsh is trading at a lower price-to-earnings ratio than United Community Banks, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

18.7% of First Us Bancsh shares are held by institutional investors. Comparatively, 82.3% of United Community Banks shares are held by institutional investors. 11.2% of First Us Bancsh shares are held by company insiders. Comparatively, 0.4% of United Community Banks shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares First Us Bancsh and United Community Banks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Us Bancsh	9.47%	5.86%	0.52%
United Community Banks	17.93%	8.91%	1.09%

Summary

United Community Banks beats First Us Bancsh on 14 of the 17 factors compared between the two stocks.

About First Us Bancsh

First US Bancshares, Inc. operates as the bank holding company for First US Bank that provides commercial banking products and services. The company offers non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. Its loan products include commercial construction, land, and land development loans, including residential housing projects, commercial and industrial development, and for purchase and improvement of raw land for agricultural production; mortgage loans on one-to-four family and multi-family residential properties; real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers, and other commercial properties; commercial and industrial loans and leases; and secured and unsecured personal loans, including automobile loans, loans for household and personal purposes, and other direct consumer installment loans. The company also provides loans secured by collateral in form of personal property items. In addition, it provides letters of credit; and safe deposit box and remote deposit capture services. The company serves small-and medium-sized businesses, property managers, business executives, professionals, and other individuals. The company was formerly known as United Security Bancshares, Inc. and changed its name to First US Bancshares, Inc. in October 2016. First US Bancshares, Inc. was founded in 1952 and is headquartered in Birmingham, Alabama.

About United Community Banks

United Community Banks, Inc. operates as the financial holding company for United Community Bank that provides financial products and services to commercial, retail, government, education, energy, health care, and real estate sectors. The company accepts various deposit products, including checking, savings, money market, and other deposit accounts. It also offers lending services, including real estate, consumer, and commercial loans, to individuals, small businesses, mid-sized commercial businesses, and non-profit organizations, as well as secured and unsecured, and mortgage loans. In addition, the company originate loans partially guaranteed by the SBA and USDA loan programs. Further, it provides wealth management services comprising financial planning, customized portfolio management, and investment advice; trust services to manage fiduciary assets; non-deposit investment products; and insurance products, including life insurance, long-term care insurance, and tax-deferred annuities, as well as invests in residential and commercial mortgage-backed securities, asset-backed securities, the U.S. treasury, the U.S. agency, and municipal obligations. Additionally, the company offers reinsurance on a property insurance contract; insurance agency services; brokerage services; and payment processing, merchant, wire transfer, private banking, and other related financial services. It operates through a network of 171 branches in Florida, Georgia, North Carolina, South Carolina, and Tennessee. United Community Banks, Inc. was founded in 1950 and is headquartered in Blairsville, Georgia.