Contrasting United Bankshares (NASDAQ:UBSI) & F.N.B. (NYSE:FNB)

F.N.B. (NYSE:FNB) and United Bankshares (NASDAQ:UBSI) are both mid-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings for F.N.B. and United Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
F.N.B.	0	0	6	0	3.00
United Bankshares	0	2	2	1	2.80

F.N.B. presently has a consensus target price of $19.60, indicating a potential upside of 15.46%. United Bankshares has a consensus target price of $44.67, indicating a potential upside of 8.15%. Given F.N.B.’s stronger consensus rating and higher possible upside, equities research analysts clearly believe F.N.B. is more favorable than United Bankshares.

Insider & Institutional Ownership

79.3% of F.N.B. shares are owned by institutional investors. Comparatively, 70.8% of United Bankshares shares are owned by institutional investors. 1.4% of F.N.B. shares are owned by company insiders. Comparatively, 3.5% of United Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares F.N.B. and United Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
F.N.B.	20.98%	8.76%	1.16%
United Bankshares	25.51%	8.60%	1.40%

Valuation & Earnings

This table compares F.N.B. 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
F.N.B.	$2.69 billion	2.25	$565.39 million	$1.56	10.88
United Bankshares	$1.82 billion	3.18	$464.60 million	$3.27	12.63

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

Dividends

F.N.B. pays an annual dividend of $0.48 per share and has a dividend yield of 2.8%. United Bankshares pays an annual dividend of $1.52 per share and has a dividend yield of 3.7%. F.N.B. pays out 30.8% of its earnings in the form of a dividend. United Bankshares pays out 46.5% 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. United Bankshares has increased 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.

Risk and Volatility

F.N.B. has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, United Bankshares has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

About F.N.B.

F.N.B. Corporation, a bank and financial holding company, provides a range of financial products and services primarily to consumers, corporations, governments, and small- to medium-sized businesses in the United States. The company operates through three segments: Community Banking, Wealth Management, and Insurance. The Community Banking segment offers commercial and consumer banking services, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. It also provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services. The Wealth Management segment provides personal and corporate fiduciary services comprising administration of decedent and trust estates; and securities brokerage and investment advisory services, mutual funds, and annuities. The Insurance segment comprises commercial and personal insurance, and reinsurance products, as well as mezzanine financing options for small- to medium-sized businesses. The company operates community banking branches in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C., and Virginia. F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.

About United Bankshares

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.