Reviewing United Bankshares (NASDAQ:UBSI) and South Plains Financial (NASDAQ:SPFI)

South Plains Financial (NASDAQ:SPFI) and United Bankshares (NASDAQ:UBSI) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Volatility & Risk

South Plains Financial has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, United Bankshares has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Institutional and Insider Ownership

55.0% of South Plains Financial shares are held by institutional investors. Comparatively, 70.8% of United Bankshares shares are held by institutional investors. 24.6% of South Plains Financial shares are held by insiders. Comparatively, 3.2% of United Bankshares shares are held by 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.

Dividends

South Plains Financial pays an annual dividend of $0.68 per share and has a dividend yield of 1.6%. United Bankshares pays an annual dividend of $1.52 per share and has a dividend yield of 3.5%. South Plains Financial pays out 19.8% 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. South Plains Financial has raised its dividend for 5 consecutive years and 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
South Plains Financial	19.69%	12.51%	1.32%
United Bankshares	25.51%	8.60%	1.40%

Analyst Ratings

This is a breakdown of current recommendations and price targets for South Plains Financial and United Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
South Plains Financial	0	1	5	0	2.83
United Bankshares	0	3	2	0	2.40

South Plains Financial presently has a consensus target price of $46.75, indicating a potential upside of 7.20%. United Bankshares has a consensus target price of $44.67, indicating a potential upside of 1.72%. Given South Plains Financial’s stronger consensus rating and higher possible upside, research analysts plainly believe South Plains Financial is more favorable than United Bankshares.

Earnings and Valuation

This table compares South Plains Financial and United Bankshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
South Plains Financial	$296.89 million	2.40	$58.47 million	$3.44	12.68
United Bankshares	$1.82 billion	3.37	$464.60 million	$3.27	13.43

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

Summary

United Bankshares beats South Plains Financial on 10 of the 17 factors compared between the two stocks.

About South Plains Financial

South Plains Financial, Inc. operates as a bank holding company for City Bank that provides commercial and consumer financial services to small and medium-sized businesses and individuals. The company operates through two segments, Banking and Insurance. It offers deposit products, including demand deposit accounts, interest-bearing products, savings accounts, and certificate of deposits. The company also provides commercial real estate loans; general and specialized commercial loans, including agricultural production and real estate, energy, finance, investment, and insurance loans, as well as loans to goods, services, restaurant and retail, construction, and other industries; residential construction loans; and 1-4 family residential loans, auto loans, and other loans for recreational vehicles or other purposes. In addition, it offers crop insurance products; trust products and services; investment services; mortgage banking services; online and mobile banking services; and debit and credit cards. The company was founded in 1941 and is headquartered in Lubbock, Texas.

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.