Auburn National Bancorporation (NASDAQ:AUBN) and Union Bankshares (UBSH) Head-To-Head Analysis

Auburn National Bancorporation (NASDAQ:AUBN) and Union Bankshares (NASDAQ:UBSH) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Auburn National Bancorporation and Union Bankshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Auburn National Bancorporation 0 0 0 0 N/A
Union Bankshares 0 1 4 1 3.00

Union Bankshares has a consensus price target of $42.00, suggesting a potential upside of 26.93%. Given Union Bankshares’ higher possible upside, analysts plainly believe Union Bankshares is more favorable than Auburn National Bancorporation.

Earnings & Valuation

This table compares Auburn National Bancorporation and Union Bankshares’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Auburn National Bancorporation $31.56 million 3.92 $8.83 million N/A N/A
Union Bankshares $633.03 million 3.45 $146.25 million $2.71 12.21

Union Bankshares has higher revenue and earnings than Auburn National Bancorporation.

Dividends

Auburn National Bancorporation pays an annual dividend of $0.96 per share and has a dividend yield of 2.8%. Union Bankshares pays an annual dividend of $0.92 per share and has a dividend yield of 2.8%. Union Bankshares pays out 33.9% of its earnings in the form of a dividend. Auburn National Bancorporation has increased its dividend for 3 consecutive years and Union Bankshares has increased its dividend for 7 consecutive years.

Risk & Volatility

Auburn National Bancorporation has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, Union Bankshares has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500.

Insider & Institutional Ownership

12.1% of Auburn National Bancorporation shares are owned by institutional investors. Comparatively, 77.5% of Union Bankshares shares are owned by institutional investors. 24.9% of Auburn National Bancorporation shares are owned by company insiders. Comparatively, 1.6% of Union Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Auburn National Bancorporation and Union Bankshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Auburn National Bancorporation 25.65% 10.34% 1.08%
Union Bankshares 23.02% 9.60% 1.35%

Summary

Union Bankshares beats Auburn National Bancorporation on 9 of the 16 factors compared between the two stocks.

About Auburn National Bancorporation

Auburn National Bancorporation, Inc. operates as the bank holding company for AuburnBank that provides various banking products and services in East Alabama. The company's deposit products include checking, savings, and transaction deposit accounts, as well as certificates of deposit. It also provides commercial, financial, agricultural, real estate construction, and consumer loan products; residential mortgage lending services; and other financial services. In addition, the company offers automated teller services; debit cards; online banking, bill payment, and other electronic services; and safe deposit boxes. It operates through its main office in Auburn, Alabama; eight full-service branches in Auburn, Opelika, Notasulga, and Valley, Alabama; and a commercial loan production office in Phenix City, Alabama. Auburn National Bancorporation, Inc. was founded in 1907 and is headquartered in Auburn, Alabama.

About Union Bankshares

Union Bankshares Corporation operates as the bank holding company for Union Bank & Trust that provides banking and related financial services to consumers and businesses. The company operates in two segments, Community Bank and Mortgage. It accepts various deposit products, including checking, savings, NOW, time deposit, and money market accounts, as well as certificates of deposit and other depository services. The company also offers loans for commercial, industrial, residential mortgage, and consumer purposes. In addition, it provides credit cards, automated teller machine (ATM) services, mobile and Internet banking services, and online bill payment services, as well as asset management, private banking, and trust services to individuals and corporations. Further, the company offers securities, brokerage, and investment advisory services; and originates and sells mortgage loan products in the secondary market principally in Virginia, North Carolina, Maryland, and the Washington D.C. metro area. As of January 1, 2018, it operated 150 branches and approximately 220 ATMs in Virginia. The company was formerly known as Union First Market Bankshares Corporation and changed its name to Union Bankshares Corporation in April 2014. Union Bankshares Corporation was founded in 1902 and is headquartered in Richmond, Virginia.

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