Blackhawk Bancorp (OTCMKTS:BHWB) & BankUnited (NYSE:BKU) Head to Head Analysis

Blackhawk Bancorp (OTCMKTS:BHWB) and BankUnited (NYSE:BKU) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent ratings for Blackhawk Bancorp and BankUnited, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blackhawk Bancorp	0	0	0	0	N/A
BankUnited	2	7	1	0	1.90

BankUnited has a consensus price target of $35.80, suggesting a potential upside of 3.05%. Given BankUnited’s higher possible upside, analysts plainly believe BankUnited is more favorable than Blackhawk Bancorp.

Institutional and Insider Ownership

99.7% of BankUnited shares are owned by institutional investors. 26.8% of Blackhawk Bancorp shares are owned by insiders. Comparatively, 1.2% of BankUnited shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Blackhawk Bancorp and BankUnited’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blackhawk Bancorp	N/A	N/A	N/A
BankUnited	8.41%	7.76%	0.57%

Earnings and Valuation

This table compares Blackhawk Bancorp and BankUnited”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blackhawk Bancorp	$63.13 million	1.51	$13.64 million	$4.72	7.07
BankUnited	$968.81 million	2.68	$178.67 million	$2.32	14.97

BankUnited has higher revenue and earnings than Blackhawk Bancorp. Blackhawk Bancorp is trading at a lower price-to-earnings ratio than BankUnited, indicating that it is currently the more affordable of the two stocks.

Summary

BankUnited beats Blackhawk Bancorp on 10 of the 12 factors compared between the two stocks.

About Blackhawk Bancorp

Blackhawk Bancorp, Inc., a financial holding company, provides various banking products and services in the United States. The company offers personal banking products and services, including checking, savings, health savings, and money market accounts, as well as certificates of deposit; personal, auto, student, and home improvement and equity loans; and lines of credit and credit cards. It also provides business banking products and services, such as business checking, business interest checking, business sweep, small business checking, business NOW, health savings, and money market accounts; commercial, development, term, equipment/fixed asset, and small business administration loans; lines and letters of credit; receivables financing; and corporate credit cards, as well as treasury management solutions. In addition, the company offers payments and transfer, mortgages lending, financial planning, wealth management, security brokerage, investment management, commercial banking, and online and mobile banking services, as well as installment loans. It serves individual, corporate, institutional, and governmental customers through its 11 full-services banking centers in northern Illinois and southern Wisconsin. The company was founded in 1881 and is headquartered in Beloit, Wisconsin.

About BankUnited

BankUnited, Inc. operates as the bank holding company for BankUnited, a national banking association that provides a range of banking services in the United States. The company offers deposit products, such as checking, money market deposit, and savings accounts; certificates of deposit; and treasury, commercial payment, and cash management services. Its loans portfolio includes commercial loans, including equipment loans, secured and unsecured lines of credit, formula-based lines of credit, owner-occupied commercial real estate term loans and lines of credit, mortgage warehouse lines, subscription finance facilities, letters of credit, commercial credit cards, small business administration and U.S. department of agriculture product offerings, export-import bank financing products, trade finance, and business acquisition finance credit facilities; commercial real estate loans; residential mortgages; and other consumer loans. The company offers online, mobile, and telephone banking services. It operates through a network of banking centers located in Florida counties and the New York metropolitan area, as well as Dallas, Texas. The company was formerly known as BU Financial Corporation. BankUnited, Inc. was incorporated in 2009 and is headquartered in Miami Lakes, Florida.