United Bankshares (NASDAQ:UBSI – Get Free Report) and Burke & Herbert Financial Services (NASDAQ:BHRB – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
Insider & Institutional Ownership
70.8% of United Bankshares shares are held by institutional investors. 3.2% of United Bankshares shares are held by company insiders. Comparatively, 12.0% of Burke & Herbert Financial Services shares are held by company 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.
Analyst Ratings
This is a summary of recent ratings for United Bankshares and Burke & Herbert Financial Services, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Bankshares | 0 | 4 | 3 | 0 | 2.43 |
| Burke & Herbert Financial Services | 0 | 3 | 2 | 1 | 2.67 |
Earnings & Valuation
This table compares United Bankshares and Burke & Herbert Financial Services”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United Bankshares | $1.82 billion | 3.58 | $464.60 million | $3.67 | 13.03 |
| Burke & Herbert Financial Services | $358.66 million | 4.07 | $117.31 million | $6.24 | 11.59 |
United Bankshares has higher revenue and earnings than Burke & Herbert Financial Services. Burke & Herbert Financial Services is trading at a lower price-to-earnings ratio than United Bankshares, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares United Bankshares and Burke & Herbert Financial Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United Bankshares | 27.97% | 9.39% | 1.53% |
| Burke & Herbert Financial Services | 18.86% | 13.66% | 1.46% |
Risk and Volatility
United Bankshares has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Burke & Herbert Financial Services has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.
Dividends
United Bankshares pays an annual dividend of $1.52 per share and has a dividend yield of 3.2%. Burke & Herbert Financial Services pays an annual dividend of $2.20 per share and has a dividend yield of 3.0%. United Bankshares pays out 41.4% of its earnings in the form of a dividend. Burke & Herbert Financial Services pays out 35.3% 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. United Bankshares has raised its dividend for 26 consecutive years and Burke & Herbert Financial Services has raised its dividend for 1 consecutive years. United Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
United Bankshares beats Burke & Herbert Financial Services on 10 of the 18 factors compared between the two stocks.
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.
About Burke & Herbert Financial Services
Burke Herbert Financial Services Corp. is a bank holding company, which engages in the provision of banking products and financial services to small to medium-sized businesses, their owners and employees, professional corporations, non-profits, and individuals. It operates through the following loan portfolio segments: Commercial Real Estate, Owner-Occupied Commercial Real Estate, Acquisition, Construction, and Development, Commercial and Industrial, Single Family Residential (1-4 Units), and Consumer Non-Real Estate and Other. The Commercial Real Estate segment includes leasing of the real estate collateral or income generated from the sale of the collateral. The Owner-Occupied Commercial Real Estate segment focuses on the operations of the business that occupies the property and the value of the collateral. The Acquisition, Construction, and Development segment offers creditworthiness of the borrower, project completion within budget, sale after completion, and the value of the collateral. The Commercial and Industrial segment is involved in the operations of the business and the value of the collateral. The Single Family Residential (1-4 Units) segment provides loans for investment purpose carry risk associated with the continued creditworthiness of the borrower, the value of the collateral, and either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. The Consumer Non-Real Estate and Other segment covers loans carry risk associated with the creditworthiness of the borrower and the value of the collateral. The company was founded on September 14, 2022 and is headquartered in Alexandria, VA.
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