Mechanics Bancorp (NASDAQ:MCHB) and Union Bankshares (NASDAQ:UNB) Head-To-Head Comparison

Mechanics Bancorp (NASDAQ:MCHB) and Union Bankshares (NASDAQ:UNB) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Valuation & Earnings

This table compares Mechanics Bancorp and Union Bankshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mechanics Bancorp	$704.83 million	4.55	$265.74 million	$1.18	12.27
Union Bankshares	$86.06 million	1.31	$11.08 million	$2.63	8.69

Mechanics Bancorp has higher revenue and earnings than Union Bankshares. Union Bankshares is trading at a lower price-to-earnings ratio than Mechanics Bancorp, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

74.7% of Mechanics Bancorp shares are held by institutional investors. Comparatively, 14.8% of Union Bankshares shares are held by institutional investors. 81.6% of Mechanics Bancorp shares are held by company insiders. Comparatively, 2.1% of Union Bankshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Mechanics Bancorp and Union Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mechanics Bancorp	24.16%	11.67%	1.49%
Union Bankshares	12.68%	15.05%	0.77%

Volatility & Risk

Mechanics Bancorp has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Union Bankshares has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Mechanics Bancorp and Union Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mechanics Bancorp	1	2	3	0	2.33
Union Bankshares	0	1	0	0	2.00

Mechanics Bancorp presently has a consensus target price of $16.50, indicating a potential upside of 14.00%. Given Mechanics Bancorp’s stronger consensus rating and higher probable upside, equities analysts clearly believe Mechanics Bancorp is more favorable than Union Bankshares.

Dividends

Mechanics Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 6.9%. Union Bankshares pays an annual dividend of $1.44 per share and has a dividend yield of 6.3%. Mechanics Bancorp pays out 84.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Union Bankshares pays out 54.8% of its earnings in the form of a dividend.

Summary

Mechanics Bancorp beats Union Bankshares on 13 of the 16 factors compared between the two stocks.

About Mechanics Bancorp

Mechanics Bancorp is a bank holding company whose principal subsidiary, Mechanics Bank, provides consumer and commercial banking services. Its offerings include checking and savings accounts, loans, cash-management services and online banking. Mechanics Bank traces its history to 1905, when it was established in Richmond, California. The bank serves individuals, businesses and communities across California through its branch network and digital services.

About Union Bankshares

Union Bankshares, Inc. is the bank holding company for Union Bank, a community banking institution headquartered in Morrisville, Vermont. The bank provides financial services to individuals, families, farmers, and businesses through a network of branches and digital banking channels. Union Bank’s products and services include checking and savings accounts, certificates of deposit, residential and consumer lending, commercial loans, agricultural financing, mortgage services, and online and mobile banking.