Citizens (NASDAQ:CIZN – Get Rating) and United Bankshares (NASDAQ:UBSI – Get Rating) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.
Profitability
This table compares Citizens and United Bankshares' net margins, return on equity and return on assets.
Get Citizens alerts:| Net Margins | Return on Equity | Return on Assets | |
| Citizens | 16.70% | 10.94% | 0.62% |
| United Bankshares | 33.26% | 7.53% | 1.19% |
Dividends
Citizens pays an annual dividend of $0.96 per share and has a dividend yield of 5.6%. United Bankshares pays an annual dividend of $1.44 per share and has a dividend yield of 3.9%. Citizens pays out 65.3% of its earnings in the form of a dividend. United Bankshares pays out 55.8% 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. United Bankshares has raised its dividend for 46 consecutive years.
Analyst Recommendations
This is a summary of recent recommendations for Citizens and United Bankshares, as provided by MarketBeat.com.| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Citizens | 0 | 1 | 0 | 0 | 2.00 |
| United Bankshares | 0 | 2 | 2 | 0 | 2.50 |
United Bankshares has a consensus price target of $39.00, indicating a potential upside of 6.30%. Given United Bankshares' stronger consensus rating and higher possible upside, analysts plainly believe United Bankshares is more favorable than Citizens.
Institutional & Insider Ownership
14.0% of Citizens shares are held by institutional investors. Comparatively, 69.6% of United Bankshares shares are held by institutional investors. 8.7% of Citizens shares are held by insiders. Comparatively, 4.2% of United Bankshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
Citizens has a beta of 0.02, meaning that its share price is 98% less volatile than the S&P 500. Comparatively, United Bankshares has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.
Valuation & Earnings
This table compares Citizens and United Bankshares' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Citizens | $50.70 million | 1.88 | $7.49 million | $1.47 | 11.61 |
| United Bankshares | $1.07 billion | 4.60 | $367.74 million | $2.58 | 14.22 |
United Bankshares has higher revenue and earnings than Citizens. Citizens 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 Citizens on 14 of the 17 factors compared between the two stocks.
About Citizens
(Get Rating)
Citizens Holding Company operates as the bank holding company for The Citizens Bank of Philadelphia that provides various commercial and personal banking products and services. The company offers demand deposits, as well as savings and time deposit accounts. It also provides secured and unsecured loans; mortgage loans; single and multi-family housing, farm, residential and commercial construction, and commercial real estate loans; commercial, industrial, and agricultural production loans; and consumer loans, as well as issues letters of credit. In addition, the company offers personal and corporate trust services; credit life and title insurance; and internet and mobile banking services. It operates a principal office in downtown Philadelphia, Mississippi; and 28 additional branches in Neshoba, Newton, Leake, Lamar, Forrest, Scott, Attala, Lauderdale, Lafayette, Oktibbeha, Rankin, Madison, Harrison, Jackson, Winston, and Kemper counties, Mississippi. Citizens Holding Company was founded in 1908 and is headquartered in Philadelphia, Mississippi.
About United Bankshares
(Get Rating)
United Bankshares, Inc., a financial holding company, 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, NOW accounts, and interest-bearing checking accounts. Its loan products include commercial loans and leases; construction and real estate loans; personal, student, credit card, 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 of December 31, 2021, the company operated 250 offices in Virginia, Maryland, Washington, D.C., North Carolina, South Carolina, Georgia, Pennsylvania, West Virginia, and Ohio. United Bankshares, Inc. was incorporated in 1982 and is headquartered in Charleston, West Virginia.
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