Union Bankshares (NASDAQ:UNB) and Community West Bancshares (NASDAQ:CWBC) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.

Volatility and Risk

Union Bankshares has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Community West Bancshares has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Union Bankshares and Community West Bancshares, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Union Bankshares 0 0 0 0 N/A
Community West Bancshares 0 0 0 0 N/A

Profitability

This table compares Union Bankshares and Community West Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Union Bankshares 16.33% 15.43% 1.31%
Community West Bancshares 13.83% 8.52% 0.74%

Dividends

Union Bankshares pays an annual dividend of $1.24 per share and has a dividend yield of 3.4%. Community West Bancshares pays an annual dividend of $0.22 per share and has a dividend yield of 2.0%. Union Bankshares has raised its dividend for 3 consecutive years and Community West Bancshares has raised its dividend for 3 consecutive years.

Valuation and Earnings

This table compares Union Bankshares and Community West Bancshares’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Union Bankshares $41.65 million 3.90 $10.60 million N/A N/A
Community West Bancshares $45.26 million 2.10 $7.41 million N/A N/A

Union Bankshares has higher earnings, but lower revenue than Community West Bancshares.

Institutional & Insider Ownership

16.6% of Union Bankshares shares are held by institutional investors. Comparatively, 23.9% of Community West Bancshares shares are held by institutional investors. 2.4% of Union Bankshares shares are held by company insiders. Comparatively, 21.8% of Community West Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Union Bankshares beats Community West Bancshares on 8 of the 11 factors compared between the two stocks.

Union Bankshares Company Profile

Union Bankshares, Inc. operates as the bank holding company for Union Bank that provides retail, commercial, and municipal banking services in northern Vermont and New Hampshire. It offers retail depository services, such as personal checking, savings, money market, IRA/SEP/KEOGH, and health savings accounts, as well as certificates of deposit. The company also provides and commercial real estate loans; consumer loans; and municipal loans; commercial loans for plant and equipment, working capital, real estate renovation, and other business purposes to business owners and investors; and residential real estate loans. In addition, it offers small business administration guaranteed, and residential construction and mortgage loans; online cash management services, including account reconciliation, credit card depository, automated clearing house origination, wire transfers, and night depository services; merchant credit card services; remote deposit capture services; and online mortgage application services. Further, the company provides business checking accounts; standby letters of credit, bank checks or money orders, and safe deposit boxes; ATM services and cards; debit cards; and telephone, Internet, and mobile banking services; home improvement loans and overdraft checking facility against preauthorized lines of credit; customer repurchase agreement sweeps; and asset management, fiduciary, and trust services. The company offers retail banking services to individuals; and commercial banking services to small and medium sized corporations, partnerships, and sole proprietorships, as well as nonprofit organizations, local municipalities, and school districts. The company operates 18 banking offices, 2 loan centers, and various ATMs. Union Bankshares, Inc. was founded in 1891 and is headquartered in Morrisville, Vermont.

Community West Bancshares Company Profile

Community West Bancshares operates as the bank holding company for Community West Bank, N.A. that provides various financial products and services in California. The company offers deposit products, such as checking accounts, savings accounts, money market accounts, and fixed rate and fixed maturity certificates of deposit, as well as cash management products. It also provides commercial, commercial real estate, consumer, manufactured housing, and small business administration loans, as well as agricultural loans for real estate and operating lines; home equity lines of credit, as well as lines of credit collateralized by residential real estate; single family real estate loans; and installment loans consisting of automobile and general-purpose loans. The company serves small to medium-sized businesses and professional organizations. It operates a network of eight branch banking offices in Goleta, Oxnard, San Luis Obispo, Santa Barbara, Santa Maria, Ventura, Paso Robles, and Westlake Village. Community West Bancshares was founded in 1989 and is headquartered in Goleta, California.

Receive News & Ratings for Union Bankshares Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Union Bankshares and related companies with MarketBeat.com's FREE daily email newsletter.