Head-To-Head Analysis: Fvcbankcorp (NASDAQ:FVCB) vs. United Bancorporation of Alabama (OTCMKTS:UBAB)

Fvcbankcorp (NASDAQ:FVCB) and United Bancorporation of Alabama (OTCMKTS:UBAB) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Profitability

This table compares Fvcbankcorp and United Bancorporation of Alabama’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fvcbankcorp	18.08%	8.92%	0.97%
United Bancorporation of Alabama	21.11%	12.60%	1.34%

Analyst Recommendations

This is a breakdown of current recommendations for Fvcbankcorp and United Bancorporation of Alabama, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fvcbankcorp	0	2	1	0	2.33
United Bancorporation of Alabama	0	1	0	0	2.00

Fvcbankcorp presently has a consensus price target of $18.00, indicating a potential upside of 13.14%. Given Fvcbankcorp’s stronger consensus rating and higher possible upside, research analysts clearly believe Fvcbankcorp is more favorable than United Bancorporation of Alabama.

Volatility and Risk

Fvcbankcorp has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500. Comparatively, United Bancorporation of Alabama has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.

Insider & Institutional Ownership

43.6% of Fvcbankcorp shares are owned by institutional investors. Comparatively, 5.5% of United Bancorporation of Alabama shares are owned by institutional investors. 10.9% of Fvcbankcorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Fvcbankcorp and United Bancorporation of Alabama”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fvcbankcorp	$122.03 million	2.36	$22.06 million	$1.21	13.15
United Bancorporation of Alabama	$89.83 million	1.77	$19.67 million	$5.22	9.96

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

Dividends

Fvcbankcorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.5%. United Bancorporation of Alabama pays an annual dividend of $1.40 per share and has a dividend yield of 2.7%. Fvcbankcorp pays out 19.8% of its earnings in the form of a dividend. United Bancorporation of Alabama pays out 26.8% 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.

Summary

Fvcbankcorp beats United Bancorporation of Alabama on 10 of the 16 factors compared between the two stocks.

About Fvcbankcorp

FVCBankcorp, Inc. operates as the bank holding company for FVCbank that provides various banking products and services in Virginia. It offers deposit products, including interest and noninterest-bearing transaction accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides commercial real estate loans; commercial construction loans; commercial loans for various business purposes, such as for working capital, equipment purchases, lines of credit, and government contract financing; small business administration loans; asset-based loans and accounts receivable financing; home equity loans; and consumer loans. In addition, it offers business and consumer credit cards; merchant services; business insurance products; and online banking, remote deposit, and mobile banking services. The company serves commercial businesses, nonprofit organizations, professional service entities, and their respective owners and employees located in the greater Washington, D.C., and Baltimore metropolitan areas. It operates branch offices in Arlington, Virginia; the independent city of Manassas, Virginia; Reston, Fairfax County, Virginia; Springfield, Fairfax County in Virginia; and Montgomery County and Baltimore in Maryland, and Washington, D.C. FVCBankcorp, Inc. was founded in 2007 and is headquartered in Fairfax, Virginia.

About United Bancorporation of Alabama

United Bancorporation of Alabama, Inc. operates as the bank holding company for United Bank that provides banking services. The company offers checking and savings accounts, certificates of deposit, individual retirement accounts, small business programs, business solutions, merchant services, and cash management services. It also provides various lending services, such as personal loans, business loans, lines of credit, and equipment loans; real estate loans for the agricultural community and working lines of credit; and overdraft services. In addition, the company offers debit cards, prepaid cards, Visa credit cards, gift cards, and safe deposit boxes. Further, it provides check cashing, convenience, remote deposit, mobile check deposit, personal storage compartments, Web payment options, insurance products, investment and brokerage, and online and mobile banking services. United Bancorporation of Alabama, Inc. was founded in 1904 and is based in Atmore, Alabama.