F.N.B. (NYSE:FNB) & United Security Bancshares (NASDAQ:UBFO) Critical Survey

F.N.B. (NYSE:FNBGet Rating) and United Security Bancshares (NASDAQ:UBFOGet Rating) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Dividends

F.N.B. pays an annual dividend of $0.48 per share and has a dividend yield of 4.0%. United Security Bancshares pays an annual dividend of $0.44 per share and has a dividend yield of 5.7%. F.N.B. pays out 43.6% of its earnings in the form of a dividend. United Security Bancshares pays out 67.7% 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.

Insider & Institutional Ownership

71.3% of F.N.B. shares are owned by institutional investors. Comparatively, 37.0% of United Security Bancshares shares are owned by institutional investors. 0.9% of F.N.B. shares are owned by insiders. Comparatively, 20.4% of United Security Bancshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for F.N.B. and United Security Bancshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
F.N.B. 0 2 3 0 2.60
United Security Bancshares 0 0 0 0 N/A

F.N.B. presently has a consensus target price of $13.62, suggesting a potential upside of 13.95%. Given F.N.B.’s higher possible upside, equities analysts plainly believe F.N.B. is more favorable than United Security Bancshares.

Volatility & Risk

F.N.B. has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, United Security Bancshares has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Profitability

This table compares F.N.B. and United Security Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
F.N.B. 27.34% 8.06% 1.03%
United Security Bancshares 26.16% 9.45% 0.86%

Earnings and Valuation

This table compares F.N.B. and United Security Bancshares’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
F.N.B. $1.34 billion 3.15 $405.00 million $1.10 10.86
United Security Bancshares $41.12 million 3.17 $10.10 million $0.65 11.78

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

Summary

F.N.B. beats United Security Bancshares on 10 of the 15 factors compared between the two stocks.

About F.N.B. (Get Rating)

F.N.B. Corporation, a financial holding company, provides a range of financial services primarily to consumers, corporations, governments, and small- to medium-sized businesses. The company operates through three segments: Community Banking, Wealth Management, and Insurance. It offers commercial banking solutions, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. The company also provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services; and wealth management services comprising personal and corporate fiduciary services comprising administration of decedent and trust estates; securities brokerage and investment advisory services, mutual funds, and annuities; and commercial and personal insurance, and reinsurance products, as well as mezzanine financing options for small- to medium-sized businesses. As of December 31, 2021, it operated 334 banking offices in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C., and Virginia. F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.

About United Security Bancshares (Get Rating)

United Security Bancshares operates as the bank holding company for United Security Bank, a state-chartered bank that provides a range of commercial banking services to the business and professional community, and individuals in California. The company accepts various deposit products, including personal and business checking accounts, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit. It also provides real estate mortgage, commercial and industrial, real estate construction, and consumer loans, as well as agricultural, installment, and student loans. In addition, the company offers online and mobile banking, safe deposit boxes, wire transfers, payroll direct deposit, cashier's check, cash management, traveler's check, money order, and foreign draft services, as well as interactive teller machines and ATM services. As of January 26, 2022, it operated 12 full-service branch offices in Fresno, Bakersfield, Campbell, Caruthers, Coalinga, Firebaugh, Mendota, Oakhurst, San Joaquin, and Taft. The company was founded in 1987 and is headquartered in Fresno, California.

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