Analyzing United Bankshares (NASDAQ:UBSI) & Cadence Bank (NYSE:CADE)

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

Dividends

United Bankshares pays an annual dividend of $1.48 per share and has a dividend yield of 3.5%. Cadence Bank pays an annual dividend of $1.00 per share and has a dividend yield of 2.6%. United Bankshares pays out 56.1% of its earnings in the form of a dividend. Cadence Bank pays out 28.7% 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 25 consecutive years and Cadence Bank has increased its dividend for 13 consecutive years. United Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares United Bankshares and Cadence Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Bankshares	$1.54 billion	3.77	$366.31 million	$2.64	16.22
Cadence Bank	$2.19 billion	3.23	$542.30 million	$3.48	11.17

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for United Bankshares and Cadence Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Bankshares	0	3	1	0	2.25
Cadence Bank	0	5	6	1	2.67

United Bankshares presently has a consensus price target of $40.25, indicating a potential downside of 5.98%. Cadence Bank has a consensus price target of $35.29, indicating a potential downside of 9.23%. Given United Bankshares’ higher probable upside, equities analysts clearly believe United Bankshares is more favorable than Cadence Bank.

Insider & Institutional Ownership

70.8% of United Bankshares shares are owned by institutional investors. Comparatively, 84.6% of Cadence Bank shares are owned by institutional investors. 3.7% of United Bankshares shares are owned by insiders. Comparatively, 2.2% of Cadence Bank shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

United Bankshares has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Cadence Bank has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Profitability

This table compares United Bankshares and Cadence Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Bankshares	22.05%	7.58%	1.23%
Cadence Bank	25.99%	8.95%	0.95%

Summary

Cadence Bank beats United Bankshares on 10 of the 18 factors compared between the two stocks.

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.

About Cadence Bank

Cadence Bank provides commercial banking and financial services. Its products and services include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized and asset-based lending, commercial real estate, equipment financing, and correspondent banking services. The company’s products and services also comprise small business administration lending, foreign exchange, wealth management, investment and trust, financial planning, retirement plan management, and personal and business insurance services. Cadence Bank was founded in 1876 and is headquartered in Tupelo, Mississippi.