Analyzing Middlefield Banc (NASDAQ:MBCN) & United Bankshares (NASDAQ:UBSI)

Middlefield Banc (NASDAQ:MBCN) and United Bankshares (NASDAQ:UBSI) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.

Volatility & Risk

Middlefield Banc has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, United Bankshares has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Dividends

Middlefield Banc pays an annual dividend of $0.80 per share and has a dividend yield of 2.6%. United Bankshares pays an annual dividend of $1.48 per share and has a dividend yield of 3.5%. Middlefield Banc pays out 45.5% of its earnings in the form of a dividend. United Bankshares pays out 56.1% 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. United Bankshares has increased its dividend for 25 consecutive years. United Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Middlefield Banc and United Bankshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Middlefield Banc	$96.99 million	2.55	$17.37 million	$1.76	17.38
United Bankshares	$1.54 billion	3.74	$366.31 million	$2.64	16.11

United Bankshares has higher revenue and earnings than Middlefield Banc. United Bankshares is trading at a lower price-to-earnings ratio than Middlefield Banc, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Middlefield Banc and United Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Middlefield Banc	0	2	0	0	2.00
United Bankshares	0	3	1	0	2.25

Middlefield Banc presently has a consensus price target of $24.00, suggesting a potential downside of 21.54%. United Bankshares has a consensus price target of $40.25, suggesting a potential downside of 5.38%. Given United Bankshares’ stronger consensus rating and higher possible upside, analysts plainly believe United Bankshares is more favorable than Middlefield Banc.

Insider & Institutional Ownership

31.7% of Middlefield Banc shares are held by institutional investors. Comparatively, 70.8% of United Bankshares shares are held by institutional investors. 3.8% of Middlefield Banc shares are held by company insiders. Comparatively, 3.7% of United Bankshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Middlefield Banc and United Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Middlefield Banc	13.31%	6.90%	0.78%
United Bankshares	22.05%	7.58%	1.23%

Summary

United Bankshares beats Middlefield Banc on 14 of the 17 factors compared between the two stocks.

About Middlefield Banc

Middlefield Banc Corp. operates as the bank holding company for The Middlefield Banking Company that provides various commercial banking services to small and medium-sized businesses, professionals, small business owners, and retail customers in northeastern and central Ohio. It offers checking, savings, negotiable order of withdrawal accounts, money market accounts, time certificates of deposit, commercial loans, real estate loans, various consumer loans, safe deposit facilities, and travelers' checks. The company also provides operational and working capital, term business, residential construction, professional, and residential and mortgage loans, as well as consumer installment loans for home improvements, automobiles, boats, and other personal expenditures; loans to finance capital purchases; selected guaranteed or subsidized loan programs for small businesses; and agricultural loans. In addition, the company resolves and disposes troubled assets in Ohio. Further, it offers official checks, money orders, and ATM services, as well as IRA accounts; online banking and bill payment services to individuals; and online cash management services to business customers. Middlefield Banc Corp. was founded in 1901 and is headquartered in Middlefield, Ohio.

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.