Financial Survey: Western Alliance Bancorporation (NYSE:WAL) and United Security Bancshares (NASDAQ:UBFO)

Western Alliance Bancorporation (NYSE:WAL) and United Security Bancshares (NASDAQ:UBFO) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Earnings and Valuation

This table compares Western Alliance Bancorporation and United Security Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Western Alliance Bancorporation	$5.37 billion	1.66	$969.00 million	$8.59	9.52
United Security Bancshares	$53.51 million	3.39	$12.29 million	$0.71	14.80

Western Alliance Bancorporation has higher revenue and earnings than United Security Bancshares. Western Alliance Bancorporation is trading at a lower price-to-earnings ratio than United Security Bancshares, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for Western Alliance Bancorporation and United Security Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Western Alliance Bancorporation	0	5	9	0	2.64
United Security Bancshares	0	0	1	0	3.00

Western Alliance Bancorporation presently has a consensus price target of $93.14, suggesting a potential upside of 13.86%. Given Western Alliance Bancorporation’s higher possible upside, equities analysts clearly believe Western Alliance Bancorporation is more favorable than United Security Bancshares.

Dividends

Western Alliance Bancorporation pays an annual dividend of $1.68 per share and has a dividend yield of 2.1%. United Security Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 4.6%. Western Alliance Bancorporation pays out 19.6% of its earnings in the form of a dividend. United Security Bancshares pays out 67.6% 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. Western Alliance Bancorporation has increased its dividend for 5 consecutive years and United Security Bancshares has increased its dividend for 2 consecutive years.

Volatility and Risk

Western Alliance Bancorporation has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, United Security Bancshares has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.

Profitability

This table compares Western Alliance Bancorporation and United Security Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Western Alliance Bancorporation	17.03%	13.58%	1.09%
United Security Bancshares	18.65%	9.03%	1.01%

Institutional and Insider Ownership

79.2% of Western Alliance Bancorporation shares are owned by institutional investors. Comparatively, 30.9% of United Security Bancshares shares are owned by institutional investors. 2.8% of Western Alliance Bancorporation shares are owned by insiders. Comparatively, 22.1% of United Security Bancshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Western Alliance Bancorporation beats United Security Bancshares on 11 of the 17 factors compared between the two stocks.

About Western Alliance Bancorporation

Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. It operates through Commercial and Consumer Related segments. The company offers deposit products, including checking, savings, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts; demand deposits; and treasury management and residential mortgage products and services. It also provides commercial and industrial loan products, such as working capital lines of credit, loans to technology companies, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans; commercial real estate loans, which are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties; construction and land development loans for single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments; and consumer loans. In addition, the company provides other financial services, such as internet banking, wire transfers, electronic bill payment and presentment, funds transfer and other digital payment offerings, lock box services, courier, and cash management services. Further, the company holds certain investment securities, municipal and non-profit loans, and leases; invests primarily in low-income housing tax credits and small business investment corporations; and holds certain real estate loans and related securities. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona.

About United Security Bancshares

United Security Bancshares operates as the bank holding company for United Security Bank, a state-chartered bank that provides a range of commercial banking services to the business and professional community, and individuals in California. The company accepts various deposit products, including personal and business checking accounts, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit. It also provides real estate mortgage, commercial and industrial, real estate construction and development, and consumer loans, as well as agricultural, installment, and student loans. In addition, the company offers online and mobile banking, safe deposit boxes, wire transfers, payroll direct deposit, cashier's check, cash management, and foreign draft services, as well as interactive teller machines; and person-to-person and bank-to-bank transfers for consumer customers. United Security Bancshares was founded in 1987 and is headquartered in Fresno, California.