Financial Survey: Royal Bank Of Canada (NYSE:RY) & United Bankshares (NASDAQ:UBSI)

Royal Bank Of Canada (NYSE:RY) and United Bankshares (NASDAQ:UBSI) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Risk and Volatility

Royal Bank Of Canada has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, United Bankshares has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Insider & Institutional Ownership

45.3% of Royal Bank Of Canada shares are owned by institutional investors. Comparatively, 70.8% of United Bankshares shares are owned by institutional investors. 3.2% of United Bankshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Royal Bank Of Canada pays an annual dividend of $4.94 per share and has a dividend yield of 2.4%. United Bankshares pays an annual dividend of $1.52 per share and has a dividend yield of 3.1%. Royal Bank Of Canada pays out 43.2% of its earnings in the form of a dividend. United Bankshares pays out 41.2% 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. Royal Bank Of Canada has increased its dividend for 15 consecutive years and United Bankshares has increased its dividend for 26 consecutive years. United Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Royal Bank Of Canada and United Bankshares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Bank Of Canada	$71.06 billion	3.95	$14.54 billion	$11.43	17.76
United Bankshares	$1.82 billion	3.65	$464.60 million	$3.69	13.24

Royal Bank Of Canada has higher revenue and earnings than United Bankshares. United Bankshares is trading at a lower price-to-earnings ratio than Royal Bank Of Canada, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Royal Bank Of Canada and United Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royal Bank Of Canada	16.17%	17.79%	0.97%
United Bankshares	28.03%	9.37%	1.52%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Royal Bank Of Canada and United Bankshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Bank Of Canada	0	5	7	1	2.69
United Bankshares	0	4	3	0	2.43

Royal Bank Of Canada currently has a consensus target price of $225.00, indicating a potential upside of 10.86%. United Bankshares has a consensus target price of $49.20, indicating a potential upside of 0.71%. Given Royal Bank Of Canada’s stronger consensus rating and higher probable upside, research analysts clearly believe Royal Bank Of Canada is more favorable than United Bankshares.

Summary

Royal Bank Of Canada beats United Bankshares on 11 of the 18 factors compared between the two stocks.

About Royal Bank Of Canada

Royal Bank of Canada operates as a diversified financial service company worldwide. The company's Personal & Commercial Banking segment offers checking and savings accounts, home equity financing, personal lending, private banking, indirect lending, including auto financing, mutual funds and self-directed brokerage accounts, guaranteed investment certificates, credit cards, and payment products and solutions; and lending, leasing, deposit, investment, foreign exchange, cash management, auto dealer financing, trade products, and services to small and medium-sized commercial businesses. This segment offers financial products and services through branches, automated teller machines, and mobile sales network. Its Wealth Management segment provides a suite of wealth, investment, trust, banking, credit, and other advice-based solutions and strategies to high net worth and ultra-high net worth individuals, and institutional clients; asset management products to institutional and individual clients; and asset and investor services to financial institutions, asset managers, and asset owners. The company's Insurance segment offers life, health, home, auto, travel, wealth, annuities, property and casualty, and reinsurance advice and solutions; and business insurance services to individual, business, and group clients through its advice centers, RBC insurance stores, and mobile advisors; digital platforms; and independent brokers and partners. The company's Capital Markets segment offers advisory and origination, sales and trading, lending and financing, and transaction banking services to corporations, institutional clients, asset managers, private equity firms, and governments. The company was founded in 1864 and is headquartered in Toronto, Canada.

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.