CNB Financial (NASDAQ:CCNE – Get Free Report) and United Bancorporation of Alabama (OTCMKTS:UBAB – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.
Volatility & Risk
CNB Financial has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, United Bancorporation of Alabama has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500.
Profitability
This table compares CNB Financial and United Bancorporation of Alabama’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CNB Financial | 14.90% | 10.13% | 0.91% |
| United Bancorporation of Alabama | 31.02% | 22.48% | 2.18% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CNB Financial | $327.03 million | 1.62 | $58.02 million | $2.34 | 10.78 |
| United Bancorporation of Alabama | $87.26 million | 2.19 | $31.54 million | $8.53 | 6.65 |
CNB Financial has higher revenue and earnings than United Bancorporation of Alabama. United Bancorporation of Alabama is trading at a lower price-to-earnings ratio than CNB Financial, indicating that it is currently the more affordable of the two stocks.
Dividends
CNB Financial pays an annual dividend of $0.72 per share and has a dividend yield of 2.9%. United Bancorporation of Alabama pays an annual dividend of $1.20 per share and has a dividend yield of 2.1%. CNB Financial pays out 30.8% of its earnings in the form of a dividend. United Bancorporation of Alabama pays out 14.1% 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.
Analyst Ratings
This is a summary of recent ratings and price targets for CNB Financial and United Bancorporation of Alabama, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CNB Financial | 0 | 1 | 0 | 0 | 2.00 |
| United Bancorporation of Alabama | 0 | 0 | 0 | 0 | 0.00 |
CNB Financial currently has a consensus target price of $28.00, suggesting a potential upside of 10.98%. Given CNB Financial’s stronger consensus rating and higher possible upside, equities research analysts plainly believe CNB Financial is more favorable than United Bancorporation of Alabama.
Institutional & Insider Ownership
52.4% of CNB Financial shares are held by institutional investors. Comparatively, 5.5% of United Bancorporation of Alabama shares are held by institutional investors. 2.8% of CNB Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
CNB Financial beats United Bancorporation of Alabama on 9 of the 15 factors compared between the two stocks.
About CNB Financial
CNB Financial Corporation operates as the bank holding company for CNB Bank that provides a range of banking products and services for individual, business, governmental, and institutional customers. The company accepts checking, savings, and time deposit accounts; and offers real estate, commercial, industrial, residential, and consumer loans, as well as various other specialized financial services. It also provides private banking; and wealth and asset management services, including the administration of trusts and estates, retirement plans, and other employee benefit plans, as well as a range of wealth management services. In addition, the company invests in debt and equity securities; sells nonproprietary annuities and other insurance products; and offers small balance unsecured loans and secured loans primarily collateralized by automobiles and equipment, as well as engages in consumer discount loan and finance business. The company was founded in 1865 and is headquartered in Clearfield, Pennsylvania.
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.
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