Analyzing Flagstar Bank, National Association (NYSE:FLG) and United Bankshares (NASDAQ:UBSI)

United Bankshares (NASDAQ:UBSI) and Flagstar Bank, National Association (NYSE:FLG) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Profitability

This table compares United Bankshares and Flagstar Bank, National Association’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Bankshares	27.97%	9.39%	1.53%
Flagstar Bank, National Association	1.08%	0.98%	0.08%

Risk and Volatility

United Bankshares has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Flagstar Bank, National Association has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Dividends

United Bankshares pays an annual dividend of $1.52 per share and has a dividend yield of 3.3%. Flagstar Bank, National Association pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. United Bankshares pays out 41.4% of its earnings in the form of a dividend. Flagstar Bank, National Association pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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 and Insider Ownership

70.8% of United Bankshares shares are held by institutional investors. Comparatively, 67.9% of Flagstar Bank, National Association shares are held by institutional investors. 3.2% of United Bankshares shares are held by insiders. Comparatively, 21.4% of Flagstar Bank, National Association shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares United Bankshares and Flagstar Bank, National Association”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Bankshares	$1.82 billion	3.45	$464.60 million	$3.67	12.55
Flagstar Bank, National Association	$4.81 billion	1.00	-$177.00 million	$0.03	385.83

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for United Bankshares and Flagstar Bank, National Association, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Bankshares	0	4	3	0	2.43
Flagstar Bank, National Association	0	4	10	0	2.71

United Bankshares presently has a consensus target price of $47.80, suggesting a potential upside of 3.78%. Flagstar Bank, National Association has a consensus target price of $16.38, suggesting a potential upside of 41.47%. Given Flagstar Bank, National Association’s stronger consensus rating and higher probable upside, analysts clearly believe Flagstar Bank, National Association is more favorable than United Bankshares.

Summary

United Bankshares beats Flagstar Bank, National Association on 10 of the 17 factors compared between the two stocks.

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.

About Flagstar Bank, National Association

Flagstar Financial, Inc. operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company’s deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit. Its loan products comprise multi-family loans; commercial real estate loans; acquisition, development, and construction loans; commercial and industrial loans; one-to-four family loans; specialty finance loans and leases; warehouse loans; and other loans, such as home equity lines of credit, boat and recreational vehicle indirect lending, point of sale consumer loans, and other consumer loans, including overdraft loans. The company offers cash management products; non-deposit investment and insurance products; and online banking, mobile banking, and bank-by-phone services. It primarily serves individuals, small and mid-size businesses, and professional associations. The company was formerly known as New York Community Bancorp, Inc. and changed its name to Flagstar Financial, Inc. in October 2024. Flagstar Financial, Inc. was founded in 1859 and is headquartered in Hicksville, New York.