Analyzing United Financial Bancorp (UBNK) and Its Peers

United Financial Bancorp (NASDAQ: UBNK) is one of 308 publicly-traded companies in the “Banks” industry, but how does it compare to its peers? We will compare United Financial Bancorp to similar businesses based on the strength of its analyst recommendations, dividends, earnings, valuation, risk, institutional ownership and profitability.

Earnings & Valuation

This table compares United Financial Bancorp and its peers gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
United Financial Bancorp $242.24 million $49.66 million 15.07
United Financial Bancorp Competitors $5.56 billion $817.91 million 373.60

United Financial Bancorp’s peers have higher revenue and earnings than United Financial Bancorp. United Financial Bancorp is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares United Financial Bancorp and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Financial Bancorp 22.67% 8.87% 0.88%
United Financial Bancorp Competitors 18.78% 8.71% 0.94%

Dividends

United Financial Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.7%. United Financial Bancorp pays out 41.0% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 35.0% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and price targets for United Financial Bancorp and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Financial Bancorp 0 1 1 0 2.50
United Financial Bancorp Competitors 2122 8326 8344 328 2.36

United Financial Bancorp presently has a consensus target price of $19.00, suggesting a potential upside of 7.77%. As a group, “Banks” companies have a potential downside of 1.29%. Given United Financial Bancorp’s stronger consensus rating and higher probable upside, equities analysts clearly believe United Financial Bancorp is more favorable than its peers.

Insider & Institutional Ownership

64.4% of United Financial Bancorp shares are held by institutional investors. Comparatively, 51.7% of shares of all “Banks” companies are held by institutional investors. 3.4% of United Financial Bancorp shares are held by insiders. Comparatively, 10.4% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

United Financial Bancorp has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, United Financial Bancorp’s peers have a beta of 0.81, meaning that their average stock price is 19% less volatile than the S&P 500.

Summary

United Financial Bancorp peers beat United Financial Bancorp on 8 of the 15 factors compared.

United Financial Bancorp Company Profile

United Financial Bancorp, Inc. is a bank holding company. The Company, through its subsidiary United Bank (the Bank) and various subsidiaries, delivers financial services to individuals, families and businesses in Connecticut and Massachusetts, including retail, commercial and consumer banking, as well as financial advisory services. The Company’s operations include the delivery of loan and deposit products to customers. Personal and business banking customers also bank with the Company online through its Website at www.bankatunited.com, as well as its mobile and telephone banking channels. The Company originates commercial loans, commercial real estate loans, residential and commercial construction loans, residential real estate loans collateralized by one- to four-family residences, home equity lines of credit and fixed rate loans and other consumer loans. The principal lending activity of the Bank is to originate loans secured by first mortgages on one- to four-family residences.

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