Critical Analysis: 1ST COLONIAL BA/SH SH (OTCMKTS:FCOB) versus UBS Group (OTCMKTS:UBS)

1ST COLONIAL BA/SH SH (OTCMKTS:FCOB) and UBS Group (NYSE:UBS) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares 1ST COLONIAL BA/SH SH and UBS Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
1ST COLONIAL BA/SH SH 17.55% 10.80% 0.87%
UBS Group 14.20% 8.07% 0.45%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for 1ST COLONIAL BA/SH SH and UBS Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
1ST COLONIAL BA/SH SH 0 0 0 0 N/A
UBS Group 1 3 3 0 2.29

UBS Group has a consensus price target of $15.00, indicating a potential upside of 44.23%. Given UBS Group’s higher probable upside, analysts plainly believe UBS Group is more favorable than 1ST COLONIAL BA/SH SH.

Institutional & Insider Ownership

11.0% of 1ST COLONIAL BA/SH SH shares are owned by institutional investors. Comparatively, 30.3% of UBS Group shares are owned by institutional investors. 1.0% of UBS Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares 1ST COLONIAL BA/SH SH and UBS Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
1ST COLONIAL BA/SH SH $25.86 million 1.88 $5.22 million N/A N/A
UBS Group $41.26 billion 0.97 $4.52 billion $1.41 7.38

UBS Group has higher revenue and earnings than 1ST COLONIAL BA/SH SH.

Risk & Volatility

1ST COLONIAL BA/SH SH has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, UBS Group has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Summary

UBS Group beats 1ST COLONIAL BA/SH SH on 7 of the 12 factors compared between the two stocks.

About 1ST COLONIAL BA/SH SH

1st Colonial Bancorp, Inc. operates as the bank holding company for 1st Colonial Community Bank that provides a range of business and consumer financial services in New Jersey. The company offers various deposit products, including statement savings accounts, money market accounts, certificates of deposit, club accounts, interest on lawyers trust accounts fund accounts, and business and personal checking accounts. It also provides home equity loans, home equity lines of credit, car loans, personal loans, residential and commercial mortgages, construction loans, lines of credit, equipment and vehicle financing, and other loans; and SBA loans for various general business purposes, including working capital, machinery and equipment, furniture and fixtures, land and building, leasehold improvements, and debt refinancing. In addition, the company offers a range of merchant services comprising card services, night depository, bulk cash processing, coin and currency ordering, and other services; VISA CheckCards; wire transfers, safe deposit boxes, and other additional services; and online banking, mobile banking, telephone banking, government banking, and ATM services. It operates two branch offices located in Collingswood and Westville, New Jersey. 1st Colonial Bancorp, Inc. was founded in 2000 and is headquartered in Collingswood, New Jersey.

About UBS Group

UBS Group AG, together with its subsidiaries, provides financial advice and solutions worldwide. It operates through four divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, and Investment Bank. The Global Wealth Management division offers investment advisory and solutions to private clients, and high and ultra high net worth clients. This segment provides corporate and banking, lending, wealth planning, investment, asset protection, and philanthropy services, as well as family office services. The Personal & Corporate Banking division provides financial products and services to private, corporate, and institutional clients. The Asset Management division offers investment products and services comprising equities, fixed income products, hedge funds, real estate and private markets, indexed and alternative beta strategies, and asset allocation and currency investment strategies; customized multi-asset, advisory, and fiduciary services; multi-manager hedge fund solutions and advisory services; and fund corporate governance and white-labeling services. The Investment Bank division provides advisory, debt and equity capital market, and financing solutions; and market lending services for global wealth management, personal and corporate banking, and asset management businesses serving the corporate, institutional, and wealth management clients. This division also offers cash, derivatives, and financing; foreign exchange, precious metals, rates, and credit; and securities research services. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is headquartered in Zurich, Switzerland.

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