Commercial National Financial (OTCMKTS:CEFC – Get Free Report) and United Bancorp (NASDAQ:UBCP – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.
Volatility and Risk
Commercial National Financial has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500. Comparatively, United Bancorp has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500.
Earnings and Valuation
This table compares Commercial National Financial and United Bancorp’s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Commercial National Financial | $27.39 million | N/A | $6.17 million | $1.48 | 6.02 |
United Bancorp | $29.43 million | 2.48 | $8.95 million | $1.59 | 7.71 |
Dividends
Commercial National Financial pays an annual dividend of $0.56 per share and has a dividend yield of 6.3%. United Bancorp pays an annual dividend of $0.70 per share and has a dividend yield of 5.7%. Commercial National Financial pays out 37.8% of its earnings in the form of a dividend. United Bancorp pays out 44.0% 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 Bancorp has increased its dividend for 12 consecutive years. Commercial National Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Commercial National Financial and United Bancorp’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Commercial National Financial | 20.95% | N/A | N/A |
United Bancorp | 21.47% | 15.23% | 1.10% |
Insider & Institutional Ownership
15.4% of United Bancorp shares are held by institutional investors. 23.0% of Commercial National Financial shares are held by company insiders. Comparatively, 11.7% of United Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Commercial National Financial and United Bancorp, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Commercial National Financial | 0 | 0 | 0 | 0 | N/A |
United Bancorp | 0 | 0 | 0 | 0 | N/A |
Summary
United Bancorp beats Commercial National Financial on 9 of the 13 factors compared between the two stocks.
About Commercial National Financial
Commercial National Financial Corporation operates as the holding company for Commercial Bank that provides various banking products and services to individuals, agricultural businesses, commercial businesses, and light industries in Michigan. The company accepts various deposit products, including checking and savings accounts, individual retirement accounts, certificates of deposit, and health savings accounts. It also offers personal loan products, such as automobile loans, recreational vehicle loans, personal lines of credit, and unsecured term loans, as well as home equity loans and mortgage loans; and business loans, including secured lines of credit, business equity line of credit, SBA loans, equipment loans, real estate loans, vehicle loans, term loans, USDA loan programs, and capital access loan programs. In addition, the company provides other services comprising business VISA check cards, debit and ATM cards, business statement savings, business certificates of deposit, merchant services, night depository, telephone banking, online banking, e-statements, direct deposit of payroll for employees, child support payments, collection of receivables, and remote deposit capture, as well as treasury services. It provides its services through offices located in Barry, Gratiot, Ingham, Kent, and Montcalm counties in Michigan. The company was founded in 1893 and is headquartered in Ithaca, Michigan.
About United Bancorp
United Bancorp, Inc. operates as the bank holding company for Unified Bank that provides commercial and retail banking services in Ohio. The company provides range of banking and financial services, which includes accepting demand, savings, and time deposits. It also offers commercial, real estate and consumer loans. United Bancorp, Inc. was founded in 1902 and is headquartered in Martins Ferry, Ohio.
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