Analyzing CPB (NYSE:CPF) and United Bankshares (NASDAQ:UBSI)

United Bankshares (NASDAQ:UBSI) and CPB (NYSE:CPF) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.

Dividends

United Bankshares pays an annual dividend of $1.52 per share and has a dividend yield of 3.2%. CPB pays an annual dividend of $1.20 per share and has a dividend yield of 3.2%. United Bankshares pays out 41.4% of its earnings in the form of a dividend. CPB pays out 38.5% 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 raised its dividend for 26 consecutive years and CPB has raised its dividend for 1 consecutive years. CPB is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
United Bankshares	27.97%	9.39%	1.53%
CPB	22.52%	14.20%	1.13%

Earnings and Valuation

This table compares United Bankshares and CPB”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Bankshares	$1.82 billion	3.60	$464.60 million	$3.67	13.11
CPB	$297.53 million	3.24	$77.48 million	$3.12	11.98

United Bankshares has higher revenue and earnings than CPB. CPB 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 Recommendations

This is a breakdown of recent ratings and recommmendations for United Bankshares and CPB, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Bankshares	0	4	3	0	2.43
CPB	0	1	2	2	3.20

United Bankshares presently has a consensus price target of $47.80, indicating a potential downside of 0.62%. CPB has a consensus price target of $39.33, indicating a potential upside of 5.21%. Given CPB’s stronger consensus rating and higher probable upside, analysts plainly believe CPB is more favorable than United Bankshares.

Risk & Volatility

United Bankshares has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, CPB has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Institutional and Insider Ownership

70.8% of United Bankshares shares are owned by institutional investors. Comparatively, 88.4% of CPB shares are owned by institutional investors. 3.2% of United Bankshares shares are owned by insiders. Comparatively, 1.7% of CPB shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

United Bankshares beats CPB 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 CPB

Central Pacific Financial Corp. operates as the bank holding company for Central Pacific Bank that provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products and services, including checking, savings and time deposits, cash management and digital banking, trust, and retail brokerage services, as well as money market accounts and certificates of deposit. The company also provides various lending activities, such as commercial, commercial and residential mortgage, home equity, and consumer loans; and other products and services comprising debit cards, internet and mobile banking, cash management services, full-service ATMs, safe deposit boxes, international banking services, night depository facilities, foreign exchange, and wire transfers. In addition, it offers wealth management products and services that include non-deposit investment products, annuities, insurance, investment management, asset custody and general consultation, and planning services. The company was founded in 1954 and is headquartered in Honolulu, Hawaii.