Union Bankshares (UBSH) versus Glacier Bancorp (GBCI) Critical Comparison

Union Bankshares (NASDAQ:UBSH) and Glacier Bancorp (NASDAQ:GBCI) are both mid-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Dividends

Union Bankshares pays an annual dividend of $0.92 per share and has a dividend yield of 2.8%. Glacier Bancorp pays an annual dividend of $1.04 per share and has a dividend yield of 2.4%. Union Bankshares pays out 48.2% of its earnings in the form of a dividend. Glacier Bancorp pays out 59.4% 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. Union Bankshares has increased its dividend for 7 consecutive years and Glacier Bancorp has increased its dividend for 7 consecutive years. Union Bankshares is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

76.9% of Union Bankshares shares are held by institutional investors. Comparatively, 82.5% of Glacier Bancorp shares are held by institutional investors. 1.6% of Union Bankshares shares are held by insiders. Comparatively, 0.4% of Glacier Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Union Bankshares has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Glacier Bancorp has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Profitability

This table compares Union Bankshares and Glacier Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Union Bankshares 20.38% 9.36% 1.27%
Glacier Bancorp 26.36% 11.96% 1.49%

Valuation and Earnings

This table compares Union Bankshares and Glacier Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Union Bankshares $401.87 million 5.34 $72.92 million $1.91 17.02
Glacier Bancorp $487.26 million 7.59 $116.37 million $1.75 25.01

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Union Bankshares and Glacier Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Union Bankshares 0 1 5 1 3.00
Glacier Bancorp 0 4 0 0 2.00

Union Bankshares presently has a consensus price target of $42.71, indicating a potential upside of 31.43%. Glacier Bancorp has a consensus price target of $42.50, indicating a potential downside of 2.88%. Given Union Bankshares’ stronger consensus rating and higher probable upside, analysts clearly believe Union Bankshares is more favorable than Glacier Bancorp.

Summary

Union Bankshares beats Glacier Bancorp on 9 of the 17 factors compared between the two stocks.

Union Bankshares Company Profile

Union Bankshares Corporation operates as the bank holding company for Union Bank & Trust that provides banking and related financial services to consumers and businesses. The company operates in two segments, Community Bank and Mortgage. It accepts various deposit products, including checking, savings, NOW, time deposit, and money market accounts, as well as certificates of deposit and other depository services. The company also offers loans for commercial, industrial, residential mortgage, and consumer purposes. In addition, it provides credit cards, automated teller machine (ATM) services, mobile and Internet banking services, and online bill payment services, as well as asset management, private banking, and trust services to individuals and corporations. Further, the company offers securities, brokerage, and investment advisory services; and originates and sells mortgage loan products in the secondary market principally in Virginia, North Carolina, Maryland, and the Washington D.C. metro area. As of January 1, 2018, it operated 150 branches and approximately 220 ATMs in Virginia. The company was formerly known as Union First Market Bankshares Corporation and changed its name to Union Bankshares Corporation in April 2014. Union Bankshares Corporation was founded in 1902 and is headquartered in Richmond, Virginia.

Glacier Bancorp Company Profile

Glacier Bancorp, Inc. operates as the holding company for Glacier Bank that provides commercial banking services to individuals, small to medium-sized businesses, community organizations, and public entities in the United States. It offers deposit products, including non-interest bearing deposits, interest bearing negotiable order of withdrawal and demand deposit accounts, savings accounts, money market deposit accounts, fixed rate certificates of deposits, negotiated-rate jumbo certificates, and individual retirement accounts. The company also provides construction and permanent loans on residential real estate; consumer land or lot acquisition loans; unimproved land and land development loans; and residential builder guidance lines comprising pre-sold and spec-home construction, and lot acquisition loans. In addition, it offers commercial real estate loans to purchase, construct, and finance commercial real estate properties; consumer loans secured by real estate, automobiles, or other assets; second mortgage loans; home equity loans consisting of 1-4 family junior lien mortgages, and first and junior lien lines of credit secured by residential real estate; and agriculture loans. Further, the company provides mortgage origination services. As of December 31, 2017, it operated in 145 locations in Montana, Idaho, Utah, Washington, Wyoming, Colorado, and Arizona. The company was incorporated in 2004 and is headquartered in Kalispell, Montana.

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