Reviewing First United (NASDAQ:FUNC) & Berkshire Bancorp (OTCMKTS:BERK)

Berkshire Bancorp (OTCMKTS:BERK) and First United (NASDAQ:FUNC) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.

Profitability

This table compares Berkshire Bancorp and First United’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Berkshire Bancorp	N/A	N/A	N/A
First United	21.02%	13.49%	1.25%

Earnings & Valuation

This table compares Berkshire Bancorp and First United”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Berkshire Bancorp	N/A	N/A	N/A	N/A	N/A
First United	$86.17 million	2.78	$20.57 million	$3.83	9.63

First United has higher revenue and earnings than Berkshire Bancorp.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Berkshire Bancorp and First United, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Berkshire Bancorp	0	0	0	0	0.00
First United	0	0	2	0	3.00

First United has a consensus price target of $42.00, indicating a potential upside of 13.91%. Given First United’s stronger consensus rating and higher possible upside, analysts plainly believe First United is more favorable than Berkshire Bancorp.

Insider & Institutional Ownership

33.3% of First United shares are held by institutional investors. 70.4% of Berkshire Bancorp shares are held by company insiders. Comparatively, 7.9% of First United shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

First United beats Berkshire Bancorp on 8 of the 9 factors compared between the two stocks.

About Berkshire Bancorp

Berkshire Bancorp Inc. operates as the bank holding company for The Berkshire Bank that provides community banking services primarily to businesses, professionals, and retail customers. The company offers statement savings, NOW, money market deposit, and checking accounts, as well as certificates of deposit. It also provides commercial and industrial, commercial and residential real estate, multi-family real estate, construction, and consumer loans, as well as mortgages and finance leasing services. In addition, the company offers ATM and debit cards; safe deposit boxes; bill pay, collection, remote deposit capture, and foreign exchange services; and mobile, telephone, and online banking services. It operates through two branches located in Manhattan; four branches located in Brooklyn, New York; four branches located in Orange and Sullivan Counties in New York State; and one branch located in Teaneck, New Jersey. Berkshire Bancorp Inc. was founded in 1871 and is headquartered in New York, New York.

About First United

First United Corporation operates as the bank holding company for First United Bank & Trust that provides various retail and commercial banking services to businesses and individuals. It offers various deposit products, which includes checking, savings, money market deposit, and regular and individual retirement accounts (IRAs), as well as certificates of deposit. The company loan portfolio includes commercial loans secured by real estate, commercial equipment, vehicles, or other assets of the borrower; commercial real estate loans for residential and commercial development, agricultural purpose properties, and service industry buildings, such as restaurants and motels, retail buildings, and general purpose business space; residential mortgage loans; home equity lines of credit; residential real estate construction loans; and indirect and direct auto loans, student loans, and other secured and unsecured lines of credit and term loans. It also offers access to multi-million-dollar certificates of deposit and the Intrafi cash service, including multi-million-dollar savings and demand deposits to municipalities, businesses, and consumers; and treasury management, cash sweep, and various checking services. In addition, the company provides trust services, which includes personal trust, investment agency accounts, charitable trusts, retirement accounts, including IRA roll-overs, 401(k) accounts and defined benefit plans, estate administration, and estate planning; and insurance products, brokerage services, and safe deposit and night depository facilities. First United Corporation was founded in 1900 and is headquartered in Oakland, Maryland.