Analyzing First NBC Bank (OTCMKTS:FNBCQ) & United Community Banks (NYSE:UCB)

First NBC Bank (OTCMKTS:FNBCQ) and United Community Banks (NYSE:UCB) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Institutional & Insider Ownership

82.3% of United Community Banks shares are owned by institutional investors. 8.4% of First NBC Bank shares are owned by company insiders. Comparatively, 0.5% of United Community Banks shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for First NBC Bank and United Community Banks, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First NBC Bank	0	0	0	0	0.00
United Community Banks	0	4	4	0	2.50

United Community Banks has a consensus price target of $38.40, indicating a potential upside of 14.51%. Given United Community Banks’ stronger consensus rating and higher probable upside, analysts plainly believe United Community Banks is more favorable than First NBC Bank.

Profitability

This table compares First NBC Bank and United Community Banks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First NBC Bank	N/A	N/A	N/A
United Community Banks	22.05%	9.65%	1.24%

Valuation and Earnings

This table compares First NBC Bank and United Community Banks”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First NBC Bank	N/A	N/A	N/A	N/A	N/A
United Community Banks	$1.54 billion	2.61	$328.10 million	$2.72	12.33

United Community Banks has higher revenue and earnings than First NBC Bank.

Summary

United Community Banks beats First NBC Bank on 8 of the 9 factors compared between the two stocks.

About First NBC Bank

First NBC Bank Holding Company operates as the bank holding company for First NBC Bank that provides a range of financial services for businesses, institutions, and individuals. The company's deposit products include savings deposits, money market accounts, negotiable order of withdrawal accounts, and certificates of deposit. Its loan portfolio comprises construction, commercial and consumer real estate, commercial and industrial, and consumer loans. The company also offers trust services, credit cards, and wire transfers. As of August 15, 2016, it operated 39 full service banking offices in New Orleans metropolitan area, Mississippi Gulf Coast, and the Florida panhandle. First NBC Bank Holding Company was founded in 2006 and is headquartered in New Orleans, Louisiana. On May 11, 2017, First NBC Bank Holding Company filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the Eastern District of Louisiana. First NBC Bank Holding Company operates as a subsidiary of First NMTC 2, LLC.

About United Community Banks

United Community Banks, Inc. operates as the financial holding company for United Community Bank that provides financial products and services to commercial, retail, government, education, energy, health care, and real estate sectors. The company accepts various deposit products, including checking, savings, money market, and other deposit accounts. It also offers lending services, including real estate, consumer, and commercial loans, to individuals, small businesses, mid-sized commercial businesses, and non-profit organizations, as well as secured and unsecured, and mortgage loans. In addition, the company originate loans partially guaranteed by the SBA and USDA loan programs. Further, it provides wealth management services comprising financial planning, customized portfolio management, and investment advice; trust services to manage fiduciary assets; non-deposit investment products; and insurance products, including life insurance, long-term care insurance, and tax-deferred annuities, as well as invests in residential and commercial mortgage-backed securities, asset-backed securities, the U.S. treasury, the U.S. agency, and municipal obligations. Additionally, the company offers reinsurance on a property insurance contract; insurance agency services; brokerage services; and payment processing, merchant, wire transfer, private banking, and other related financial services. It operates through a network of 171 branches in Florida, Georgia, North Carolina, South Carolina, and Tennessee. United Community Banks, Inc. was founded in 1950 and is headquartered in Blairsville, Georgia.