Bank7 (NASDAQ:BSVN) & United Bankshares (NASDAQ:UBSI) Head-To-Head Analysis

Bank7 (NASDAQ:BSVN) and United Bankshares (NASDAQ:UBSI) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Volatility & Risk

Bank7 has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, United Bankshares has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Earnings and Valuation

This table compares Bank7 and United Bankshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank7	$137.26 million	3.18	$43.07 million	$4.66	9.84
United Bankshares	$1.82 billion	3.40	$464.60 million	$3.57	12.57

United Bankshares has higher revenue and earnings than Bank7. Bank7 is trading at a lower price-to-earnings ratio than United Bankshares, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Bank7 and United Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank7	0	0	3	1	3.25
United Bankshares	0	3	3	0	2.50

Bank7 currently has a consensus price target of $54.50, indicating a potential upside of 18.81%. United Bankshares has a consensus price target of $45.75, indicating a potential upside of 1.94%. Given Bank7’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Bank7 is more favorable than United Bankshares.

Dividends

Bank7 pays an annual dividend of $1.08 per share and has a dividend yield of 2.4%. United Bankshares pays an annual dividend of $1.52 per share and has a dividend yield of 3.4%. Bank7 pays out 23.2% of its earnings in the form of a dividend. United Bankshares pays out 42.6% 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. Bank7 has raised its dividend for 5 consecutive years and United Bankshares has raised its dividend for 26 consecutive years. United Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

23.5% of Bank7 shares are held by institutional investors. Comparatively, 70.8% of United Bankshares shares are held by institutional investors. 25.7% of Bank7 shares are held by company insiders. Comparatively, 3.2% of United Bankshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Bank7 and United Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank7	31.77%	18.18%	2.34%
United Bankshares	27.45%	9.26%	1.51%

Summary

Bank7 beats United Bankshares on 10 of the 17 factors compared between the two stocks.

About Bank7

Bank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers. It offers commercial deposit, commercial checking, money market, and other deposit accounts; and retail deposit services, such as certificates of deposit, money market accounts, checking accounts, negotiable order of withdrawal accounts, savings accounts, and automated teller machine access. The company also provides commercial real estate, hospitality, energy, and commercial and industrial lending services; consumer lending services to individuals for personal and household purposes comprising residential real estate loans and mortgage banking services, personal lines of credit, loans for the purchase of automobiles, and other installment loans, as well as secured and unsecured term loans and home improvement loans. It operates through a network of full-service branches in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area, and Kansas. The company was formerly known as Haines Financial Corp. Bank7 Corp. was founded in 1901 and is headquartered in Oklahoma City, Oklahoma.

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.