Financial Survey: Parke Bancorp (NASDAQ:PKBK) versus United Bancorp (NASDAQ:UBCP)

Risk and Volatility

Parke Bancorp has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, United Bancorp has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.

Valuation & Earnings

This table compares Parke Bancorp and United Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Parke Bancorp	$63.25 million	4.31	$28.46 million	$2.33	9.85
United Bancorp	$40.90 million	1.87	$8.95 million	$1.38	9.31

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Parke Bancorp	22.32%	9.75%	1.39%
United Bancorp	18.28%	12.71%	0.96%

Institutional & Insider Ownership

49.7% of Parke Bancorp shares are held by institutional investors. Comparatively, 15.4% of United Bancorp shares are held by institutional investors. 15.3% of Parke Bancorp shares are held by insiders. Comparatively, 11.7% of United Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Parke Bancorp pays an annual dividend of $0.72 per share and has a dividend yield of 3.1%. United Bancorp pays an annual dividend of $0.71 per share and has a dividend yield of 5.5%. Parke Bancorp pays out 30.9% of its earnings in the form of a dividend. United Bancorp pays out 51.4% 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 Bancorp has raised its dividend for 12 consecutive years. United Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Parke Bancorp beats United Bancorp on 11 of the 14 factors compared between the two stocks.

About Parke Bancorp

Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company offers various deposit products, including checking, savings, time, money market, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans. In addition, the company provides debit cards, internet banking, and online bill payment services. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.

About United Bancorp

United Bancorp, Inc. operates as the bank holding company for Unified Bank that provides commercial and retail banking services in Ohio. The company provides range of banking and financial services, which includes accepting demand, savings, and time deposits. It also offers commercial, real estate and consumer loans. United Bancorp, Inc. was founded in 1902 and is headquartered in Martins Ferry, Ohio.