Comparing United Bancorporation of Alabama (OTCMKTS:UBAB) & Citizens Bancshares (OTCMKTS:CZBS)

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for United Bancorporation of Alabama and Citizens Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Bancorporation of Alabama	0	1	0	0	2.00
Citizens Bancshares	0	0	0	0	0.00

Valuation and Earnings

This table compares United Bancorporation of Alabama and Citizens Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Bancorporation of Alabama	$89.83 million	1.89	$19.67 million	$5.60	9.89
Citizens Bancshares	$44.60 million	2.12	$10.59 million	N/A	N/A

United Bancorporation of Alabama has higher revenue and earnings than Citizens Bancshares.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
United Bancorporation of Alabama	22.47%	13.65%	1.42%
Citizens Bancshares	N/A	N/A	N/A

Risk & Volatility

United Bancorporation of Alabama has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, Citizens Bancshares has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500.

Insider & Institutional Ownership

5.5% of United Bancorporation of Alabama shares are owned by institutional investors. 10.2% of Citizens Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

United Bancorporation of Alabama pays an annual dividend of $1.42 per share and has a dividend yield of 2.6%. Citizens Bancshares pays an annual dividend of $1.20 per share and has a dividend yield of 2.2%. United Bancorporation of Alabama pays out 25.4% of its earnings in the form of a dividend.

Summary

United Bancorporation of Alabama beats Citizens Bancshares on 9 of the 12 factors compared between the two stocks.

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.

About Citizens Bancshares

Citizens Bancshares Corporation operates as the holding company for Citizens Trust Bank that provides various commercial banking services to individual and corporate customers. The company offers checking and savings accounts; and demand and money market deposits. Its loan products include commercial, financial, and agricultural loans; loans secured by personal property, such as automobiles, marketable securities, and other titled recreational vehicles and motorcycles, as well as unsecured consumer debt; commercial real estate loans; single-family residential loans; and construction and development loans. The company also offers investment accounts and certificate of deposit account registry services. In addition, it provides merchant services, which include point of sale terminal, credit and debit card processing, electronic benefits transfer, gift card, and Internet shopping cart services; cash management services; and credit cards. Further, the company offers online and mobile banking, as well as check reorder services. Citizens Bancshares Corporation was founded in 1921 and is headquartered in Atlanta, Georgia.