Head to Head Analysis: Univest Corporation of Pennsylvania (NASDAQ:UVSP) & First Bank (NASDAQ:FRBA)

Univest Corporation of Pennsylvania (NASDAQ:UVSP) and First Bank (NASDAQ:FRBA) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Univest Corporation of Pennsylvania and First Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Univest Corporation of Pennsylvania	18.25%	10.19%	1.15%
First Bank	17.02%	9.69%	1.05%

Dividends

Univest Corporation of Pennsylvania pays an annual dividend of $0.92 per share and has a dividend yield of 2.4%. First Bank pays an annual dividend of $0.36 per share and has a dividend yield of 2.4%. Univest Corporation of Pennsylvania pays out 27.6% of its earnings in the form of a dividend. First Bank pays out 21.6% 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. Univest Corporation of Pennsylvania has increased its dividend for 1 consecutive years. Univest Corporation of Pennsylvania is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Univest Corporation of Pennsylvania and First Bank”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Univest Corporation of Pennsylvania	$518.35 million	2.07	$90.76 million	$3.33	11.59
First Bank	$245.83 million	1.55	$43.66 million	$1.67	9.09

Univest Corporation of Pennsylvania has higher revenue and earnings than First Bank. First Bank is trading at a lower price-to-earnings ratio than Univest Corporation of Pennsylvania, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Univest Corporation of Pennsylvania and First Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Univest Corporation of Pennsylvania	0	3	1	0	2.25
First Bank	1	1	2	0	2.25

Univest Corporation of Pennsylvania presently has a consensus price target of $37.00, indicating a potential downside of 4.16%. First Bank has a consensus price target of $17.50, indicating a potential upside of 15.22%. Given First Bank’s higher possible upside, analysts clearly believe First Bank is more favorable than Univest Corporation of Pennsylvania.

Risk & Volatility

Univest Corporation of Pennsylvania has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, First Bank has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Institutional & Insider Ownership

75.1% of Univest Corporation of Pennsylvania shares are owned by institutional investors. Comparatively, 64.9% of First Bank shares are owned by institutional investors. 1.8% of Univest Corporation of Pennsylvania shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Univest Corporation of Pennsylvania beats First Bank on 13 of the 16 factors compared between the two stocks.

About Univest Corporation of Pennsylvania

Univest Financial Corporation operates as the bank holding company for Univest Bank and Trust Co. that provides banking products and services primarily in the United States. It operates through three segments: Banking, Wealth Management, and Insurance. The Banking segment offers a range of banking services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking, and equipment lease financing services for individuals, businesses, municipalities, and nonprofit organizations. Its Wealth Management segment provides investment advisory, financial planning, and trust and brokerage services for private families and individuals, municipal pension plans, retirement plans, and trusts and guardianships. The Insurance segment offers commercial property and casualty insurance, employee benefits solutions, personal insurance lines, and human resources consulting services. The company was formerly known as Univest Corporation of Pennsylvania and changed its name to Univest Financial Corporation in January 2019. The company was founded in 1876 and is headquartered in Souderton, Pennsylvania.

About First Bank

First Bank provides various banking products and services to small to mid-sized businesses and individuals. The company accepts various deposits, including non-interest-bearing demand deposits, interest bearing demand accounts, money market accounts, savings accounts, and certificates of deposit, as well as commercial checking accounts. It also offers various loan products comprising commercial and industrial loans, which include line of credit, inventory, equipment, and short-term working capital financing; commercial real estate loans, such as owner-occupied, investor, construction and development, and multi-family loans; residential real estate loans comprising residential mortgages, first and second lien home equity loans, and revolving lines of credit; and consumer and other loans consists of auto, personal, traditional installment, and other loans. The company also provides electronic banking services, including Internet and mobile banking, electronic bill payment, and banking by phone; ATM and debit cards, and wire and ACH transfer services; remote deposit capture; and cash management services, as well as engages in the capital markets activities. It operates full-service branches in Cinnaminson, Delanco, Denville, Ewing, Fairfield, Flemington, Hamilton, Lawrence, Monroe, Pennington, Randolph, Somerset, and Williamstown, New Jersey; Doylestown, Trevose, Warminster, and West Chester, Paoli, Malvern, Coventry, Devon, Lionville, and Glen Mills Pennsylvania; and Palm Beach, Florida. First Bank was incorporated in 2007 and is headquartered in Hamilton, New Jersey.