United Bankshares (NASDAQ:UBSI – Get Free Report) and Colony Bankcorp (NYSE:CBAN – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.
Dividends
United Bankshares pays an annual dividend of $1.52 per share and has a dividend yield of 3.4%. Colony Bankcorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.3%. United Bankshares pays out 42.6% of its earnings in the form of a dividend. Colony Bankcorp pays out 30.0% 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 26 consecutive years and Colony Bankcorp has increased its dividend for 7 consecutive years. United Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a summary of current ratings for United Bankshares and Colony Bankcorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Bankshares | 0 | 3 | 3 | 0 | 2.50 |
| Colony Bankcorp | 0 | 1 | 3 | 0 | 2.75 |
Volatility & Risk
United Bankshares has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Colony Bankcorp has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.
Insider and Institutional Ownership
70.8% of United Bankshares shares are held by institutional investors. Comparatively, 50.4% of Colony Bankcorp shares are held by institutional investors. 3.2% of United Bankshares shares are held by company insiders. Comparatively, 3.9% of Colony Bankcorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares United Bankshares and Colony Bankcorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United Bankshares | 27.45% | 9.26% | 1.51% |
| Colony Bankcorp | 14.83% | 10.23% | 1.01% |
Valuation & Earnings
This table compares United Bankshares and Colony Bankcorp”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United Bankshares | $1.82 billion | 3.36 | $464.60 million | $3.57 | 12.44 |
| Colony Bankcorp | $190.23 million | 2.28 | $28.25 million | $1.60 | 12.83 |
United Bankshares has higher revenue and earnings than Colony Bankcorp. United Bankshares is trading at a lower price-to-earnings ratio than Colony Bankcorp, indicating that it is currently the more affordable of the two stocks.
Summary
United Bankshares beats Colony Bankcorp on 10 of the 16 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 Colony Bankcorp
Colony Bankcorp, Inc. operates as the bank holding company for Colony Bank that provides various banking products and services to commercial and consumer customers. The company offers various deposit products, including demand, savings, and time deposits. It also provides loans to small and medium-sized businesses; residential and commercial construction, and land development loans; commercial real estate loans; commercial loans; agri-business and production loans; residential mortgage loans; home equity loans; and consumer loans. In addition, the company offers internet banking services, electronic bill payment services, safe deposit box rentals, telephone banking, credit and debit card services, and remote depository products, as well as access to a network of ATMs. As of January 20, 2022, it operated 39 locations throughout Georgia. The company was founded in 1975 and is headquartered in Fitzgerald, Georgia.
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