Analyzing Union Bankshares (UNB) and Pinnacle Bancshares (PCLB)

Union Bankshares (NASDAQ:UNB) and Pinnacle Bancshares (OTCMKTS:PCLB) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings and price targets for Union Bankshares and Pinnacle Bancshares, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Union Bankshares 0 0 1 0 3.00
Pinnacle Bancshares 0 0 0 0 N/A

Union Bankshares currently has a consensus target price of $42.00, suggesting a potential downside of 10.14%. Given Union Bankshares’ higher possible upside, equities analysts clearly believe Union Bankshares is more favorable than Pinnacle Bancshares.

Volatility & Risk

Union Bankshares has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500. Comparatively, Pinnacle Bancshares has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500.

Valuation & Earnings

This table compares Union Bankshares and Pinnacle Bancshares’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Union Bankshares $38.41 million 5.43 $7.07 million N/A N/A
Pinnacle Bancshares $9.43 million 2.69 $2.29 million N/A N/A

Union Bankshares has higher revenue and earnings than Pinnacle Bancshares.

Institutional & Insider Ownership

16.5% of Union Bankshares shares are owned by institutional investors. Comparatively, 6.0% of Pinnacle Bancshares shares are owned by institutional investors. 2.3% of Union Bankshares shares are owned by company insiders. Comparatively, 14.4% of Pinnacle Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Union Bankshares pays an annual dividend of $1.24 per share and has a dividend yield of 2.7%. Pinnacle Bancshares pays an annual dividend of $0.44 per share and has a dividend yield of 1.8%. Union Bankshares has increased its dividend for 3 consecutive years. Union Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Union Bankshares and Pinnacle Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Union Bankshares 23.07% 17.10% 1.39%
Pinnacle Bancshares 25.28% 9.71% 1.12%

Summary

Union Bankshares beats Pinnacle Bancshares on 12 of the 14 factors compared between the two stocks.

Union Bankshares Company Profile

Union Bankshares, Inc. operates as the bank holding company for Union Bank that provides retail, commercial, and municipal banking services in northern Vermont and New Hampshire. It offers retail depository services, such as personal checking, savings, money market, IRA/SEP/KEOGH, health savings, and individual retirement accounts, as well as certificates of deposit. The company also provides and commercial real estate loans; consumer loans; and municipal loans; commercial loans for plant and equipment, working capital, real estate renovation, and other business purposes to business owners and investors; and residential real estate loans. In addition, it offers small business administration guaranteed, and residential construction and mortgage loans; online cash management services, including account reconciliation, credit card depository, automated clearing house origination, wire transfers, and night depository services; merchant credit card services; remote deposit capture services; and online mortgage application services. Further, the company provides business checking accounts; standby letters of credit, bank checks or money orders, and safe deposit boxes; ATM services and cards; debit cards; and telephone, Internet, and mobile banking services; home improvement loans and overdraft checking facility against preauthorized lines of credit; customer repurchase agreement sweeps; and asset management, fiduciary, and trust services. The company offers retail banking services to individuals; and commercial banking services to small and medium sized corporations, partnerships, and sole proprietorships, as well as nonprofit organizations, local municipalities, and school districts. The company operates 17 banking offices, 3 loan centers, and various ATMs. Union Bankshares, Inc. was founded in 1891 and is headquartered in Morrisville, Vermont.

Pinnacle Bancshares Company Profile

Pinnacle Bancshares, Inc. operates as the bank holding company for Pinnacle Bank that provides banking products and services in Alabama. The company's deposit products include savings accounts, checking accounts, individual retirement accounts, money market deposit accounts, certificates of deposit, interest accounts, and student accounts, as well as demand and time deposits. Its loan portfolio comprises commercial real estate loans, real estate construction and development loans, residential real estate loans, and other real estate loans; commercial non-real estate loans, such as commercial, financial, agricultural, and municipal tax free loans; home mortgage loans; and consumer loans comprising installment loans, overdrafts, and other revolving credit loans, as well as automobile, recreational vehicle, boat, second and vacation home, construction, and bridge loans. The company also offers phone and online banking services; and other services, including merchant services, transfer and payment, automated clearing house, payroll direct deposit, e-statement, safe deposit box, and remote deposit services, as well as notary services. It operates seven offices in the central and northwest Alabama. Pinnacle Bancshares, Inc. was founded in 1935 and is based in Jasper, Alabama.

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