United Security Bankshares (NASDAQ: UBFO – Get a rating) and Alerus Financial (NASDAQ:ALRS – Get a rating) are both small cap finance companies, but which is the better investment? We’ll compare the two companies based on earnings strength, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
This table compares the net margins, return on equity and return on assets of United Security Bancshares and Alerus Financial.
|Net margins||Return on equity||return on assets|
|United Security Bancshares||27.32%||10.08%||0.90%|
Insider and Institutional Ownership
37.0% of United Security Bancshares shares are held by institutional investors. By comparison, 39.5% of Alerus Financial’s shares are held by institutional investors. 20.4% of United Security Bancshares shares are held by insiders. By comparison, 6.9% of Alerus Financial shares are held by insiders. Strong institutional ownership indicates that endowments, large fund managers, and hedge funds believe a stock is poised for long-term growth.
United Security Bancshares pays an annual dividend of $0.44 per share and has a dividend yield of 6.0%. Alerus Financial pays an annual dividend of $0.72 per share and has a dividend yield of 2.9%. United Security Bancshares pays 63.8% of its profits as a dividend. Alerus Financial pays 26.8% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years.
Risk and Volatility
United Security Bancshares has a beta of 0.7, meaning its stock price is 30% less volatile than the S&P 500. In comparison, Alerus Financial has a beta of 0.74, meaning its stock price is 26 % less volatile than the S&P 500.
This is a summary of the current ratings and target prices for United Security Bancshares and Alerus Financial, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|United Security Bancshares||0||0||0||0||N / A|
Alerus Financial has a consensus target price of $28.00, suggesting a potential upside of 13.64%. Given Alerus Financial’s possible higher upside, analysts clearly believe that Alerus Financial is more favorable than United Security Bancshares.
Valuation and benefits
This table compares the revenue, earnings per share (EPS) and valuation of United Security Bancshares and Alerus Financial.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|United Security Bancshares||$41.12 million||3.02||$10.10 million||$0.69||10.57|
|Alerus Financial||$240.04 million||1.77||$52.68 million||$2.69||9.16|
Alerus Financial has higher revenue and profit than United Security Bancshares. Alerus Financial trades at a lower price-to-earnings ratio than United Security Bancshares, indicating that it is currently the more affordable of the two stocks.
Alerus Financial beats United Security Bancshares on 10 out of 15 factors compared between the two stocks.
About United Security Bancshares
United Security Bancshares operates as a bank holding company for United Security Bank, a state-chartered bank that provides a range of commercial banking services to businesses and the professional community, as well as individuals in California. The Company accepts a variety of deposit products, including personal and business checking accounts, savings accounts, interest-bearing negotiable promissory withdrawal accounts, money market accounts and term deposit certificates. It also offers real estate, commercial and industrial mortgages, building 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 checks, cash management, travelers checks, money orders and services. foreign draft, as well as ATMs and ATM services. As of January 26, 2022, it operated 12 full-service branches in Fresno, Bakersfield, Campbell, Caruthers, Coalinga, Firebaugh, Mendota, Oakhurst, San Joaquin and Taft. The company was founded in 1987 and is based in Fresno, California.
About Alerus Financial
Alerus Financial Corporation, through its subsidiary, Alerus Financial, National Association, provides various financial services to businesses and consumers. The Company operates through four segments: Banking, Pension and Benefits, Wealth Management and Mortgages. It offers various deposit products, including demand deposits, interest-bearing transaction accounts, money market accounts, term and savings deposits, checking accounts and certificates of deposit; and cash management products, including electronic receivables management, remote deposit capture, vault services, merchant services and other cash management services. The Company also offers commercial loans, business term loans, lines of credit and commercial real estate loans, as well as loans for construction and land development; consumer credit products, including residential first mortgages; installment loans and lines of credit; and second mortgage loans. In addition, it offers pension plan administration and investment advisory services, employee stock ownership plan, trust services, payroll, health savings accounts and other employee benefits services. , as well as individual retirement accounts; and financial planning, investment management, personal and business trust, estate administration and custodial services. In addition, the Company provides debit and credit cards, online banking, mobile banking/wallet services, payments, private banking, payroll accounts, flexible spending accounts, mobile banking services. administration and government health insurance program. It offers banking services through fourteen offices in North Dakota, Minnesota and Arizona; and pension and benefit plans in 50 states through offices in Michigan, Minnesota and Colorado. The company was formerly known as First National Bank North Dakota and changed its name to Alerus Financial Corporation in 2000. Alerus Financial Corporation was founded in 1879 and is headquartered in Grand Forks, North Dakota.
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