National Australia Bank (OTCMKTS:NABZY) vs. United Bancshares (NASDAQ:UBOH) Critical Analysis

United Bancshares (NASDAQ:UBOH) and National Australia Bank (OTCMKTS:NABZY) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Risk and Volatility

United Bancshares has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, National Australia Bank has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500.

Profitability

This table compares United Bancshares and National Australia Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Bancshares	14.16%	N/A	N/A
National Australia Bank	N/A	N/A	N/A

Dividends

United Bancshares pays an annual dividend of $0.88 per share and has a dividend yield of 4.5%. National Australia Bank pays an annual dividend of $0.52 per share and has a dividend yield of 3.8%. United Bancshares pays out 31.3% of its earnings in the form of a dividend.

Institutional & Insider Ownership

1.0% of United Bancshares shares are owned by institutional investors. 6.6% of United Bancshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for United Bancshares and National Australia Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Bancshares	0	0	0	0	N/A
National Australia Bank	0	0	0	0	N/A

Valuation & Earnings

This table compares United Bancshares and National Australia Bank”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Bancshares	$46.23 million	1.27	$8.61 million	$2.81	7.00
National Australia Bank	$33.43 billion	2.51	$4.94 billion	N/A	N/A

National Australia Bank has higher revenue and earnings than United Bancshares.

Summary

National Australia Bank beats United Bancshares on 5 of the 9 factors compared between the two stocks.

About United Bancshares

United Bancshares, Inc. operates as the bank holding company for The Union Bank Company that provides various commercial and consumer banking services. The company accepts various deposits products, such as checking, savings, demand deposit, money market deposit, term certificate, and individual retirement accounts, as well as certificates of deposit. Its loan products include commercial and residential real estate, agricultural, commercial and industrial, home equity, and various types of consumer and small business administration loans. In addition, the company offers wealth management, financial needs analysis, mutual funds, securities trading, annuities, and life insurance services; and treasury management, online and mobile banking, automatic teller machine, bill pay, safe deposit box rental, payment, and other personalized services. It also operates full service banking centers and loan production offices in northwest and central Ohio. United Bancshares, Inc. was founded in 1904 and is headquartered in Columbus Grove, Ohio.

About National Australia Bank

National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, and internationally. The company operates through Business and Private Banking; Personal Banking; Corporate and Institutional Banking; New Zealand Banking; and Corporate Functions and Other segments. It accepts transaction accounts, savings accounts, debit cards, and term deposits; and specialized accounts, such as foreign currency, business interest, cash maximiser, farm management, community free saver, statutory trust, and project bank accounts, as well as farm management deposits. In addition, the company provides home loans, personal loans, and business loans; vehicle and equipment finance; and trade and invoice finance, as well as business overdrafts and bank guarantees. Further, it offers insurance products consisting of home and content, landlord, travel, car, caravan and trailer, life, and business insurance products; and pension, self-managed super funds, cash management, and financial planning and advisory services. Additionally, the company provides investment products; credit, debit, and business cards; payments and merchant services; online and internet banking services; small business services; international and foreign exchange solutions; and industry specific banking services. The company was founded in 1834 and is based in Melbourne, Australia.