United Bancorporation of Alabama (OTCMKTS:UBAB – Get Free Report) and Affinity Bancshares (NASDAQ:AFBI – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.
Volatility and Risk
United Bancorporation of Alabama has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, Affinity Bancshares has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500.
Earnings & Valuation
This table compares United Bancorporation of Alabama and Affinity Bancshares”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United Bancorporation of Alabama | $89.83 million | 2.17 | $19.67 million | $6.15 | 10.34 |
| Affinity Bancshares | $33.36 million | 4.20 | $8.33 million | $1.37 | 16.79 |
United Bancorporation of Alabama has higher revenue and earnings than Affinity Bancshares. United Bancorporation of Alabama is trading at a lower price-to-earnings ratio than Affinity Bancshares, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
5.5% of United Bancorporation of Alabama shares are owned by institutional investors. Comparatively, 39.3% of Affinity Bancshares shares are owned by institutional investors. 12.3% of Affinity Bancshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares United Bancorporation of Alabama and Affinity Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United Bancorporation of Alabama | 23.54% | 14.40% | 1.49% |
| Affinity Bancshares | 16.50% | 7.51% | 1.04% |
Analyst Ratings
This is a summary of current ratings and recommmendations for United Bancorporation of Alabama and Affinity Bancshares, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Bancorporation of Alabama | 0 | 1 | 0 | 0 | 2.00 |
| Affinity Bancshares | 0 | 0 | 1 | 0 | 3.00 |
Summary
United Bancorporation of Alabama beats Affinity Bancshares on 7 of the 13 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 Affinity Bancshares
Affinity Bancshares, Inc. operates as the holding company for Affinity Bank that provides various banking products and services in Georgia. The company offers various deposit accounts, including savings accounts, checking accounts, certificates of deposit, and individual retirement accounts, as well as Kasasa (rewards) deposit program for checking accounts with interest rates or cash-back rewards. It offers commercial and residential real estate, commercial and industrial, residential mortgage, construction and land, and consumer loans, as well as balloon and adjustable-rate loans. In addition, the company invests in U.S. treasury securities; securities issued by the U.S. government and its agencies, or government sponsored enterprises, including mortgage-backed securities and collateralized mortgage obligations; corporate and municipal bonds; certificates of deposit in other financial institutions; and federal and money market funds. Further, it operates a virtual bank under the name FitnessBank, which accepts deposits and provides higher interest rates based on customers meeting certain fitness goals. Affinity Bancshares, Inc. was founded in 1928 and is headquartered in Covington, Georgia.
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