Union Bankshares (NASDAQ:UNB) and German American Bancorp (NASDAQ:GABC) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.
Earnings and Valuation
This table compares Union Bankshares and German American Bancorp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Union Bankshares||$52.75 million||2.61||$12.81 million||N/A||N/A|
|German American Bancorp||$228.84 million||4.17||$62.21 million||$2.34||15.35|
This table compares Union Bankshares and German American Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|German American Bancorp||34.59%||12.64%||1.55%|
Union Bankshares pays an annual dividend of $1.32 per share and has a dividend yield of 4.3%. German American Bancorp pays an annual dividend of $0.84 per share and has a dividend yield of 2.3%. German American Bancorp pays out 35.9% of its earnings in the form of a dividend. Union Bankshares has increased its dividend for 1 consecutive years and German American Bancorp has increased its dividend for 1 consecutive years.
This is a breakdown of recent recommendations and price targets for Union Bankshares and German American Bancorp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|German American Bancorp||0||1||0||0||2.00|
German American Bancorp has a consensus price target of $29.00, suggesting a potential downside of 19.29%. Given German American Bancorp’s higher probable upside, analysts plainly believe German American Bancorp is more favorable than Union Bankshares.
Volatility & Risk
Union Bankshares has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, German American Bancorp has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.
Institutional and Insider Ownership
13.3% of Union Bankshares shares are owned by institutional investors. Comparatively, 43.1% of German American Bancorp shares are owned by institutional investors. 1.3% of Union Bankshares shares are owned by insiders. Comparatively, 7.8% of German American Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
German American Bancorp beats Union Bankshares on 9 of the 13 factors compared between the two stocks.
About Union Bankshares
Union Bankshares, Inc. operates as a one-bank holding company for Union Bank, which engages in the provision of retail, commercial, municipal banking, and asset management & trust services. It offers residential real estate loans, construction real estate loans, commercial real estate loans, commercial loans, consumer loans, and municipal loans. The company was founded in 1891 and is headquartered in Morrisville, VT.
About German American Bancorp
German American Bancorp, Inc. is a holding company, which engages in owning a trust, brokerage, and financial planning through German American Financial Advisors & Trust Co., and German American Insurance, Inc. It operates through the following business segments: Core Banking, Wealth Management Services, Insurance Operations, and Other. The Core Banking segment involves attracting deposits from the general public and using such funds to originate consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans, primarily in the local market of the company. The Wealth Management Service segment provides trust, investment advisory, retirement planning, and brokerage services to customers. The Insurance Operations segment offers a full line of personal and corporate insurance products. The Other segment refers to the primary differences between segment amounts and consolidated totals. The company was founded in 1982 and is headquartered in Jasper, IN.
Receive News & Ratings for Union Bankshares Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Union Bankshares and related companies with MarketBeat.com's FREE daily email newsletter.