Affinity Bancshares (NASDAQ:AFBI – Get Free Report) and United Bankshares (NASDAQ:UBSI – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.
Volatility & Risk
Affinity Bancshares has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500. Comparatively, United Bankshares has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.
Earnings and Valuation
This table compares Affinity Bancshares and United Bankshares”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Affinity Bancshares | $52.93 million | 2.59 | $8.33 million | $1.37 | 16.42 |
| United Bankshares | $1.82 billion | 3.28 | $464.60 million | $3.57 | 12.12 |
United Bankshares has higher revenue and earnings than Affinity Bancshares. United Bankshares is trading at a lower price-to-earnings ratio than Affinity Bancshares, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Affinity Bancshares and United Bankshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Affinity Bancshares | 16.50% | 7.51% | 1.04% |
| United Bankshares | 27.45% | 9.26% | 1.51% |
Insider & Institutional Ownership
39.3% of Affinity Bancshares shares are held by institutional investors. Comparatively, 70.8% of United Bankshares shares are held by institutional investors. 12.4% of Affinity Bancshares shares are held by insiders. Comparatively, 3.2% of United Bankshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and target prices for Affinity Bancshares and United Bankshares, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Affinity Bancshares | 0 | 0 | 1 | 0 | 3.00 |
| United Bankshares | 0 | 3 | 3 | 0 | 2.50 |
United Bankshares has a consensus target price of $45.75, suggesting a potential upside of 5.71%. Given United Bankshares’ higher probable upside, analysts clearly believe United Bankshares is more favorable than Affinity Bancshares.
Summary
United Bankshares beats Affinity Bancshares on 11 of the 14 factors compared between the two stocks.
About Affinity Bancshares
Affinity Bancshares, Inc. operates as the holding company for Affinity Bank that provides various banking products and services in Georgia. The company offers various deposit accounts, including savings accounts, checking accounts, certificates of deposit, and individual retirement accounts, as well as Kasasa (rewards) deposit program for checking accounts with interest rates or cash-back rewards. It offers commercial and residential real estate, commercial and industrial, residential mortgage, construction and land, and consumer loans, as well as balloon and adjustable-rate loans. In addition, the company invests in U.S. treasury securities; securities issued by the U.S. government and its agencies, or government sponsored enterprises, including mortgage-backed securities and collateralized mortgage obligations; corporate and municipal bonds; certificates of deposit in other financial institutions; and federal and money market funds. Further, it operates a virtual bank under the name FitnessBank, which accepts deposits and provides higher interest rates based on customers meeting certain fitness goals. Affinity Bancshares, Inc. was founded in 1928 and is headquartered in Covington, Georgia.
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.
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