Head to Head Comparison: United Bancorporation of Alabama (OTCMKTS:UBAB) versus Third Coast Bancshares (NASDAQ:TCBX)

United Bancorporation of Alabama (OTCMKTS:UBAB) and Third Coast Bancshares (NASDAQ:TCBX) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Profitability

This table compares United Bancorporation of Alabama and Third Coast Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Bancorporation of Alabama	22.47%	13.65%	1.42%
Third Coast Bancshares	16.30%	12.05%	1.17%

Dividends

United Bancorporation of Alabama pays an annual dividend of $1.40 per share and has a dividend yield of 2.6%. Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 42.9%. United Bancorporation of Alabama pays out 25.0% of its earnings in the form of a dividend. Third Coast Bancshares pays out 433.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

5.5% of United Bancorporation of Alabama shares are held by institutional investors. Comparatively, 36.9% of Third Coast Bancshares shares are held by institutional investors. 10.5% of Third Coast Bancshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

United Bancorporation of Alabama has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Third Coast Bancshares has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.

Valuation and Earnings

This table compares United Bancorporation of Alabama and Third Coast Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Bancorporation of Alabama	$89.83 million	1.86	$19.67 million	$5.60	9.70
Third Coast Bancshares	$219.24 million	2.97	$47.67 million	$3.89	10.10

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

Analyst Ratings

This is a summary of recent recommendations for United Bancorporation of Alabama and Third Coast Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Bancorporation of Alabama	0	1	0	0	2.00
Third Coast Bancshares	0	2	3	0	2.60

Third Coast Bancshares has a consensus target price of $45.00, suggesting a potential upside of 14.51%. Given Third Coast Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe Third Coast Bancshares is more favorable than United Bancorporation of Alabama.

Summary

Third Coast Bancshares beats United Bancorporation of Alabama on 10 of the 16 factors compared between the two stocks.

About United Bancorporation of Alabama

United Bancorporation of Alabama, Inc. operates as the bank holding company for United Bank that provides banking services. The company offers checking and savings accounts, certificates of deposit, individual retirement accounts, small business programs, business solutions, merchant services, and cash management services. It also provides various lending services, such as personal loans, business loans, lines of credit, and equipment loans; real estate loans for the agricultural community and working lines of credit; and overdraft services. In addition, the company offers debit cards, prepaid cards, Visa credit cards, gift cards, and safe deposit boxes. Further, it provides check cashing, convenience, remote deposit, mobile check deposit, personal storage compartments, Web payment options, insurance products, investment and brokerage, and online and mobile banking services. United Bancorporation of Alabama, Inc. was founded in 1904 and is based in Atmore, Alabama.

About Third Coast Bancshares

Third Coast Bancshares, Inc. operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit. It also offers commercial and industrial loans, equipment loans, working capital lines of credit, guaranteed loans, auto finance, letters of credit, commercial and residential real estate, and construction, development, and other loans. In addition, the company provides retail and commercial online banking platforms, mobile banking apps, mortgage, treasury management solutions, merchant card services, and customer digital solutions, as well as debit and credit cards. Third Coast Bancshares, Inc. was founded in 2008 and is headquartered in Humble, Texas.