Comparing Benchmark Bankshares (OTCMKTS:BMBN) & United Bankshares (NASDAQ:UBSI)

Benchmark Bankshares (OTCMKTS:BMBN) and United Bankshares (NASDAQ:UBSI) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.

Insider & Institutional Ownership

3.2% of Benchmark Bankshares shares are held by institutional investors. Comparatively, 70.8% of United Bankshares shares are held by institutional investors. 14.0% of Benchmark Bankshares shares are held by insiders. Comparatively, 3.5% of United Bankshares shares are held by 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.

Profitability

This table compares Benchmark Bankshares and United Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Benchmark Bankshares	23.80%	N/A	N/A
United Bankshares	25.51%	8.60%	1.40%

Dividends

Benchmark Bankshares pays an annual dividend of $0.96 per share and has a dividend yield of 2.6%. United Bankshares pays an annual dividend of $1.52 per share and has a dividend yield of 3.4%. Benchmark Bankshares pays out 21.5% of its earnings in the form of a dividend. United Bankshares pays out 46.5% 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 Bankshares has increased its dividend for 26 consecutive years. United Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for Benchmark Bankshares and United Bankshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Benchmark Bankshares	0	0	0	0	0.00
United Bankshares	0	2	2	1	2.80

United Bankshares has a consensus price target of $44.67, indicating a potential upside of 1.24%. Given United Bankshares’ stronger consensus rating and higher possible upside, analysts plainly believe United Bankshares is more favorable than Benchmark Bankshares.

Risk & Volatility

Benchmark Bankshares has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500. Comparatively, United Bankshares has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.

Earnings and Valuation

This table compares Benchmark Bankshares and United Bankshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Benchmark Bankshares	$83.37 million	1.96	$19.84 million	$4.46	8.21
United Bankshares	$1.82 billion	3.40	$464.60 million	$3.27	13.49

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

Summary

United Bankshares beats Benchmark Bankshares on 15 of the 18 factors compared between the two stocks.

About Benchmark Bankshares

Benchmark Bankshares, Inc. operates as the holding company for Benchmark Community Bank that provides various banking products and services in the United States. The company accepts various deposits, such as checking, saving, commercial services, and youth accounts. Its loan products include personal, mortgage, other real estate, business, auto, and student loans. The company also offers credit and debit cards; wealth management services comprising financial solutions, financial and retirement planning, and portfolio management, as well as estate, charitable giving, and trust services; and reorder checks, safe deposit boxes, wire transfers, bill pay, and internet and mobile banking services. The company was founded in 1971 and is based in Kenbridge, Virginia.

About United Bankshares

United Bankshares, Inc., through its subsidiaries, primarily provides commercial and retail banking products and services in the United States. It operates through two segments, Community Banking and Mortgage Banking. The company accepts checking, savings, and time and money market accounts; individual retirement accounts; and demand deposits, statement and special savings, and NOW accounts. Its loan products include commercial loans and leases to small to mid-size industrial and commercial companies; construction and real estate loans, such as commercial and residential mortgages, and loans secured by owner-occupied real estate; personal, student, credit card receivables, personal, commercial, and floor plan loans; and home equity loans. In addition, the company provides credit cards; safe deposit boxes, wire transfers, and other banking products and services; investment and security services; services to correspondent banks, including buying and selling federal funds; automated teller machine services; and internet and telephone banking services. Further, it offers community banking services, such as asset management, real property title insurance, financial planning, mortgage banking, and brokerage services, as well as investment management and retirement planning services. United Bankshares, Inc. was incorporated in 1982 and is headquartered in Charleston, West Virginia.