Critical Analysis: United Bancorporation of Alabama (OTCMKTS:UBAB) versus Community Capital Bancshares (OTCMKTS:ALBY)

Profitability

This table compares Community Capital Bancshares and United Bancorporation of Alabama’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Capital Bancshares	N/A	N/A	N/A
United Bancorporation of Alabama	23.01%	15.16%	1.59%

Valuation & Earnings

This table compares Community Capital Bancshares and United Bancorporation of Alabama”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Capital Bancshares	$15.03 million	2.49	$4.45 million	$3.58	8.03
United Bancorporation of Alabama	$97.72 million	1.86	$28.00 million	$6.35	8.79

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

Dividends

Community Capital Bancshares pays an annual dividend of $2.00 per share and has a dividend yield of 7.0%. United Bancorporation of Alabama pays an annual dividend of $1.40 per share and has a dividend yield of 2.5%. Community Capital Bancshares pays out 55.9% of its earnings in the form of a dividend. United Bancorporation of Alabama pays out 22.0% 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.

Institutional and Insider Ownership

5.5% of United Bancorporation of Alabama shares are held by institutional investors. 42.4% of Community Capital Bancshares shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Community Capital Bancshares has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, United Bancorporation of Alabama has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.

Summary

United Bancorporation of Alabama beats Community Capital Bancshares on 10 of the 13 factors compared between the two stocks.

About Community Capital Bancshares

Community Capital Bancshares, Inc. operates as the holding company for AB&T that provides various banking products and services to individual and corporate customers. The company accepts various deposit products, such as checking, savings, money market, and individual retirement accounts, as well as certificates of deposits. Its loan products include commercial and residential real estate, commercial, financial, agricultural, consumer installment, overdrafts and other revolving credit, and educational loans. The company also offers money transfer, bill pay, remote deposit capture, ACH origination, and merchant services, as well as online, mobile, and text message banking services. The company was incorporated in 1998 and is based in Albany, Georgia.

About United Bancorporation of Alabama

United Bancorporation of Alabama, Inc. operates as the bank holding company for United Bank that provides banking services. The company offers checking and savings accounts, certificates of deposit, individual retirement accounts, small business programs, business solutions, merchant services, and cash management services. It also provides various lending services, such as personal loans, business loans, lines of credit, and equipment loans; real estate loans for the agricultural community and working lines of credit; and overdraft services. In addition, the company offers debit cards, prepaid cards, Visa credit cards, gift cards, and safe deposit boxes. Further, it provides check cashing, convenience, remote deposit, mobile check deposit, personal storage compartments, Web payment options, insurance products, investment and brokerage, and online and mobile banking services. United Bancorporation of Alabama, Inc. was founded in 1904 and is based in Atmore, Alabama.