Comparing United Community Banks (UCBI) and Old Line Bancshares, Inc. (MD) (OLBK)

United Community Banks (NASDAQ:UCBI) and Old Line Bancshares, Inc. (MD) (NASDAQ:OLBK) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Risk & Volatility

United Community Banks has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Old Line Bancshares, Inc. (MD) has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Profitability

This table compares United Community Banks and Old Line Bancshares, Inc. (MD)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Community Banks 27.81% 12.27% 1.38%
Old Line Bancshares, Inc. (MD) 22.08% 10.76% 1.26%

Dividends

United Community Banks pays an annual dividend of $0.64 per share and has a dividend yield of 2.4%. Old Line Bancshares, Inc. (MD) pays an annual dividend of $0.48 per share and has a dividend yield of 1.8%. United Community Banks pays out 29.9% of its earnings in the form of a dividend. Old Line Bancshares, Inc. (MD) pays out 21.9% 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 Community Banks has increased its dividend for 3 consecutive years and Old Line Bancshares, Inc. (MD) has increased its dividend for 3 consecutive years.

Analyst Ratings

This is a summary of current ratings and price targets for United Community Banks and Old Line Bancshares, Inc. (MD), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Community Banks 0 4 2 0 2.33
Old Line Bancshares, Inc. (MD) 0 1 3 0 2.75

United Community Banks presently has a consensus target price of $30.00, indicating a potential upside of 13.59%. Old Line Bancshares, Inc. (MD) has a consensus target price of $36.00, indicating a potential upside of 37.51%. Given Old Line Bancshares, Inc. (MD)’s stronger consensus rating and higher possible upside, analysts plainly believe Old Line Bancshares, Inc. (MD) is more favorable than United Community Banks.

Earnings & Valuation

This table compares United Community Banks and Old Line Bancshares, Inc. (MD)’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United Community Banks $593.04 million 3.53 $166.11 million $2.14 12.34
Old Line Bancshares, Inc. (MD) $123.25 million 3.62 $27.22 million $2.19 11.95

United Community Banks has higher revenue and earnings than Old Line Bancshares, Inc. (MD). Old Line Bancshares, Inc. (MD) is trading at a lower price-to-earnings ratio than United Community Banks, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

89.4% of United Community Banks shares are held by institutional investors. Comparatively, 49.9% of Old Line Bancshares, Inc. (MD) shares are held by institutional investors. 1.2% of United Community Banks shares are held by company insiders. Comparatively, 10.6% of Old Line Bancshares, Inc. (MD) shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

United Community Banks beats Old Line Bancshares, Inc. (MD) on 9 of the 16 factors compared between the two stocks.

United Community Banks Company Profile

United Community Banks, Inc. operates as the bank holding company for United Community Bank that provides retail and corporate banking services to individuals and businesses. It offers various deposit accounts, such as checking accounts, savings and time deposits accounts, NOW accounts, money market deposits, and certificates of deposit. The company also provides secured and unsecured loans that include commercial real estate, commercial and industrial, commercial construction, residential construction and mortgage, and indirect auto loans, as well as home equity lines of credits and fixed and adjustable-rate home mortgage loans. It also offers wire transfers, brokerage services, and other financial services, as well as risk management, payment processing, and merchant services. In addition, the company owns an insurance agency. As of December 31, 2017, it operated 156 locations in Georgia, North Carolina, South Carolina, and Tennessee. United Community Banks, Inc. was founded in 1950 and is based in Blairsville, Georgia.

Old Line Bancshares, Inc. (MD) Company Profile

Old Line Bancshares, Inc. operates as the bank holding company for Old Line Bank that provides banking products and services to small and medium size businesses, entrepreneurs, professionals, consumers, and high net worth clients. The company accepts a range of deposit products, including demand, NOW, money market, and savings accounts, as well as certificates of deposit. It also offers commercial and industrial loans, such as lines of credit, revolving credit facilities, accounts receivable financing, term loans, equipment loans, small business administration loans, standby letters of credit, and unsecured loans; commercial real estate loans; funds for the construction of single family residences, financing to builders for the construction of pre-sold homes, and loans for multi-family housing, as well as home equity and home improvement loans; land acquisition and development loans; and consumer installment loans. In addition, the company provides safe deposit boxes, wire transfer services, automated teller machine services, and Internet and mobile banking services; debit, prepaid, and credit cards; commercial account services comprising direct deposit of payroll, overnight sweep, lockbox, and remote deposit capture; and investment services consisting of investment management, estate and succession planning, and brokerage services. As of December 31, 2018, it operated a total of 37 branches and 9 loan production offices in suburban Maryland counties of Anne Arundel, Calvert, Charles, Frederick, Harford, Howard, Prince George's, Montgomery, and St. Mary's; and Baltimore and Carroll. Old Line Bancshares, Inc. was founded in 1989 and is headquartered in Bowie, Maryland.

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