Dacotah Banks (OTCMKTS:DBIN – Get Free Report) and United Bancorp (NASDAQ:UBCP – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
Analyst Recommendations
This is a summary of recent ratings and target prices for Dacotah Banks and United Bancorp, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Dacotah Banks | 0 | 0 | 0 | 0 | N/A |
United Bancorp | 0 | 0 | 0 | 0 | N/A |
Risk and Volatility
Valuation and Earnings
This table compares Dacotah Banks and United Bancorp”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Dacotah Banks | $199.04 million | 1.86 | $26.17 million | $2.25 | 14.67 |
United Bancorp | $40.90 million | 1.90 | $8.95 million | $1.49 | 8.78 |
Dacotah Banks has higher revenue and earnings than United Bancorp. United Bancorp is trading at a lower price-to-earnings ratio than Dacotah Banks, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
15.4% of United Bancorp shares are owned by institutional investors. 11.7% of United Bancorp shares are owned by company 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.
Dividends
Dacotah Banks pays an annual dividend of $0.60 per share and has a dividend yield of 1.8%. United Bancorp pays an annual dividend of $0.71 per share and has a dividend yield of 5.4%. Dacotah Banks pays out 26.7% of its earnings in the form of a dividend. United Bancorp pays out 47.7% 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. United Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Dacotah Banks and United Bancorp’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Dacotah Banks | 11.08% | N/A | N/A |
United Bancorp | 19.85% | 14.19% | 1.04% |
Summary
United Bancorp beats Dacotah Banks on 9 of the 14 factors compared between the two stocks.
About Dacotah Banks
Dacotah Banks, Inc. provides various banking and financial products and services to individuals and businesses. The company provides demand and certificates of deposit; checking, individual retirement, health savings, and money market accounts; and commercial, commercial real estate, residential mortgage, and consumer loans. It also offers vehicle, boat, motorhome, mortgage, camper, motorcycle, snowmobile, jet SKI, and ATV loans; and unsecured, overdraft protection, and student loans; business, term, and small business administration loans, and other loans. In addition, the company provides credit, debit, and gift cards; mobile and online banking; auto, homeowner, health, and life insurance products; and estate, and trust services. Further, the company offers retirement planning, investment management, foundation, endowment, bill paying, charitable giving, and elder care services, as well as cash management services. Additionally, it provides offers operating lines of credit, state and federal programs, and equipment loans and leases. It also provides crop, homeowner, health, life, farm, and ranch insurance services; and farm and ranch management services. The company operates across various locations in Minnesota, North Dakota, and South Dakota. Dacotah Banks, Inc. was founded in 1955 and is headquartered in Aberdeen, South Dakota.
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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