Analyzing First BanCorp. (NYSE:FBP) & United Bankshares (NASDAQ:UBSI)

United Bankshares (NASDAQ:UBSI) and First BanCorp. (NYSE:FBP) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Earnings and Valuation

This table compares United Bankshares and First BanCorp.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Bankshares	$1.82 billion	3.40	$464.60 million	$3.27	13.49
First BanCorp.	$1.26 billion	2.82	$344.87 million	$2.15	10.43

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

Insider & Institutional Ownership

70.8% of United Bankshares shares are owned by institutional investors. Comparatively, 97.9% of First BanCorp. shares are owned by institutional investors. 3.7% of United Bankshares shares are owned by insiders. Comparatively, 2.3% of First BanCorp. shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

United Bankshares pays an annual dividend of $1.52 per share and has a dividend yield of 3.4%. First BanCorp. pays an annual dividend of $0.72 per share and has a dividend yield of 3.2%. United Bankshares pays out 46.5% of its earnings in the form of a dividend. First BanCorp. pays out 33.5% 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 and First BanCorp. has increased its dividend for 6 consecutive years. United Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for United Bankshares and First BanCorp., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Bankshares	0	2	2	1	2.80
First BanCorp.	0	2	4	0	2.67

United Bankshares presently has a consensus target price of $44.67, suggesting a potential upside of 1.24%. First BanCorp. has a consensus target price of $24.58, suggesting a potential upside of 9.58%. Given First BanCorp.’s higher probable upside, analysts clearly believe First BanCorp. is more favorable than United Bankshares.

Risk & Volatility

United Bankshares has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, First BanCorp. has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Profitability

This table compares United Bankshares and First BanCorp.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Bankshares	25.51%	8.60%	1.40%
First BanCorp.	27.48%	17.33%	1.70%

Summary

United Bankshares beats First BanCorp. on 10 of the 18 factors compared between the two stocks.

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.

About First BanCorp.

First BanCorp. operates as a bank holding company for FirstBank Puerto Rico that provides a range of financial products and services to consumers and commercial customers. The company operates through six segments: Commercial and Corporate Banking, Mortgage Banking, Consumer (Retail) Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations. The Commercial and Corporate Banking segment offers commercial loans, including commercial real estate and construction loans, as well as other products, such as cash management and business management services. The Mortgage Banking segment engages in the origination, sale, and servicing of various residential mortgage loans; hedging activities; and purchase of mortgage loans from branch and mortgage bankers. The Consumer (Retail) Banking segment provides auto loans, finance leases, boat and personal loans, credit card loans, and lines of credit; and interest-bearing and non-interest-bearing checking and savings accounts, and individual retirement accounts and retail certificates of deposit (CDs), as well as insurance agency services. The Treasury and Investments segment offers funding and liquidity management services. The United States Operations segment provides checking, savings, and money market accounts, as well as retail CDs; traditional commercial and industrial, and commercial real estate loans, residential mortgages, term and construction loan, home equity loans, lines of credit, FHLB advances, and brokered CDs; and internet banking, cash management, remote deposit capture, and automated clearing house transactions services. The Virgin Islands Operations segment is involved in consumer, commercial lending, and deposit-taking activities. First BanCorp. was founded in 1948 and is headquartered in San Juan, Puerto Rico.