Financial Analysis: United Bankshares (NASDAQ:UBSI) vs. HBT Financial (NASDAQ:HBT)

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United Bankshares (NASDAQ:UBSI – Get Rating) and HBT Financial (NASDAQ:HBT – Get Rating) are both finance companies, but which company is better? We’ll compare the two companies based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Dividends

United Bankshares pays an annual dividend of $1.44 per share and has a dividend yield of 3.8%. HBT Financial pays an annual dividend of $0.64 per share and has a dividend yield of 3.5%. United Bankshares pays 55.8% of its profits as a dividend. HBT Financial pays 33.2% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. United Bankshares has increased its dividend for 47 consecutive years and HBT Financial has increased its dividend for 1 consecutive year. United Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares the net margins, return on equity and return on assets of United Bankshares and HBT Financial.

Net margins Return on equity return on assets
United Bankshares 33.26% 7.53% 1.19%
HBT Financial 31.99% 14.14% 1.30%

Institutional and insider ownership

65.8% of United Bankshares shares are held by institutional investors. By comparison, 26.3% of HBT Financial’s shares are held by institutional investors. 4.2% of United Bankshares shares are held by insiders of the company. By comparison, 65.2% of HBT Financial’s shares are held by insiders of the company. Strong institutional ownership is an indication that endowments, large fund managers, and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for United Bankshares and HBT Financial, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
United Bankshares 0 2 1 0 2.33
HBT Financial 1 0 0 0 1.00

United Bankshares currently has a consensus price target of $38.50, suggesting a potential upside of 0.26%. HBT Financial has a consensus price target of $19.00, suggesting a potential upside of 4.00%. Considering HBT Financial’s possible higher upside, analysts clearly believe that HBT Financial is more favorable than United Bankshares.

Risk and Volatility

United Bankshares has a beta of 1.11, which means its stock price is 11% more volatile than the S&P 500. In comparison, HBT Financial has a beta of 1.07, which means its stock price is 7% more volatile than the S&P 500.

Valuation and benefits

This chart compares the revenue, earnings per share (EPS), and valuation of United Bankshares and HBT Financial.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
United Bankshares $1.07 billion 4.84 $367.74 million $2.58 14.88
HBT Financial $165.55 million 3.18 $56.27 million $1.93 9.47

United Bankshares has higher revenue and profit than HBT Financial. HBT Financial trades 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 HBT Financial on 12 out of 17 factors compared between the two stocks.

About United Bankshares

(Get a 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 money market accounts and on time; individual retirement accounts; and demand deposits, statements and special savings, NOW accounts and interest-bearing checking accounts. Its lending products include commercial loans and leases; construction and real estate loans; personal, student, credit card, business and floor plan loans; and home equity loans. Additionally, the company provides credit cards; safe deposit boxes, wire transfers and other banking products and services; investment and security services; correspondent banking services, including buying and selling federal funds; automated teller machine services; and internet and telephone banking. Additionally, it offers community banking services, such as asset management, real estate title insurance, financial planning, mortgage banking, and brokerage services. As of December 31, 2021, the company operated 250 offices in Virginia, Maryland, Washington, DC, North Carolina, South Carolina, Georgia, Pennsylvania, West Virginia and Ohio. United Bankshares, Inc. was incorporated in 1982 and is headquartered in Charleston, West Virginia.

About HBT Financial

(Get a rating)

HBT financial logoHBT Financial, Inc. operates as a bank holding company for Heartland Bank and Trust Company which provides corporate, commercial and retail banking products and services to individuals, businesses and municipal entities. The Company’s deposit accounts consist of non-interest bearing demand deposits, interest bearing transaction accounts, money market accounts, savings accounts, certificates of deposit, health savings accounts and individual retirement accounts. Its lending offering includes owner-occupied and non-owner occupied commercial real estate; land and multi-family construction and development; commercial and industrial; agricultural and agricultural land; and residential loans for one to four families, as well as municipal, consumer and other loans. The company also offers wealth management services, including consumer, trust and estate financial planning; trustee and caretaker; investment management; consultancy and administration of company pension plans; and retail brokerage services. In addition, it provides farmland management, farmland sales and crop insurance services; and cash management services, as well as the issuance and sale of residential mortgage loans. Additionally, the Company offers digital banking services, such as online and mobile banking, and digital payment services, as well as personal financial management tools. It operates through 57 branches in central and northeastern Illinois and four locations in eastern Iowa. The company was formerly known as Heartland Bancorp, Inc. and changed its name to HBT Financial, Inc. in September 2019. HBT Financial, Inc. was founded in 1920 and is headquartered in Bloomington, Illinois.



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