Head-To-Head Analysis: Peoples Financial (OTCMKTS:PFBX) & United Bancorp (NASDAQ:UBCP)

Insider and Institutional Ownership

32.8% of Peoples Financial shares are held by institutional investors. Comparatively, 15.4% of United Bancorp shares are held by institutional investors. 28.1% of Peoples Financial shares are held by insiders. Comparatively, 11.7% of United Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Peoples Financial and United Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peoples Financial	54.68%	28.21%	2.58%
United Bancorp	18.28%	12.56%	0.96%

Dividends

Peoples Financial pays an annual dividend of $0.36 per share and has a dividend yield of 1.9%. United Bancorp pays an annual dividend of $0.72 per share and has a dividend yield of 5.4%. Peoples Financial pays out 7.7% of its earnings in the form of a dividend. United Bancorp pays out 52.2% 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 raised 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.

Valuation and Earnings

This table compares Peoples Financial 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
Peoples Financial	$39.52 million	2.19	$9.17 million	$4.70	3.96
United Bancorp	$29.25 million	2.64	$8.95 million	$1.38	9.68

Peoples Financial has higher revenue and earnings than United Bancorp. Peoples Financial is trading at a lower price-to-earnings ratio than United Bancorp, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Peoples Financial has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, United Bancorp has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500.

Summary

Peoples Financial beats United Bancorp on 10 of the 14 factors compared between the two stocks.

About Peoples Financial

Peoples Financial Corporation operates as the bank holding company for The Peoples Bank that provides banking, financial, and trust services to government entities, individuals, and small and commercial businesses in Mississippi. The company accepts various deposits, such as interest and non-interest-bearing checking accounts, savings accounts, certificates of deposit, and individual retirement accounts (IRAs). It offers business, commercial, real estate, construction, personal, and installment loans; and personal trust, agencies, and estate services, including living and testamentary trusts, executorships, guardianships, and conservatorships. In addition, the company provides self-directed IRAs; and escrow management, stock transfer, and bond paying agency accounts to corporate customers. Further, it offers other services consisting of safe deposit box rental, wire transfer, night drop facilities, collection, cash management, and Internet banking services. the company provides services to customers of various industries, such as seafood, retail, hospitality, hotel/motel, gaming, and construction. Peoples Financial Corporation was founded in 1896 and is headquartered in Biloxi, Mississippi.

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.