Head-to-head analysis: Capital One Financial (NYSE: COF) and United Security Bancshares (NASDAQ: UBFO)


Capital One Financial (NYSE: COFGet a rating) and United Security Bancshares (NASDAQ: UBFOGet a rating) are both finance companies, but which is the better investment? We’ll compare the two companies based on earnings strength, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Institutional and Insider Ownership

89.3% of Capital One Financial shares are held by institutional investors. By comparison, 37.0% of United Security Bancshares shares are held by institutional investors. 1.3% of Capital One Financial shares are held by insiders of the company. Comparatively, 20.4% of United Security Bancshares shares are held by insiders of the company. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock is poised for long-term growth.

Profitability

This table compares the net margins, return on equity and return on assets of Capital One Financial and United Security Bancshares.

Net margins Return on equity return on assets
Capital One Financial 34.71% 18.66% 2.67%
United Security Bancshares 26.16% 9.45% 0.86%

Dividends

Capital One Financial pays an annual dividend of $2.40 per share and has a dividend yield of 1.9%. United Security Bancshares pays an annual dividend of $0.44 per share and has a dividend yield of 5.7%. Capital One Financial pays 9.4% of its profits as a dividend. United Security Bancshares pays 67.7% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Capital One Financial has increased its dividend for 1 consecutive years.

Risk and Volatility

Capital One Financial has a beta of 1.44, meaning its stock price is 44% more volatile than the S&P 500. In contrast, United Security Bancshares has a beta of 0.72, meaning its stock price is 28% less volatile than the S&P 500.

Valuation and benefits

This table compares the revenue, earnings per share (EPS) and valuation of Capital One Financial and United Security Bancshares.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Capital One Financial $32.03 billion 1.52 $12.39 billion $25.43 4.88
United Security Bancshares $41.12 million 3.17 $10.10 million $0.65 11.78

Capital One Financial has higher revenue and profit than United Security Bancshares. Capital One Financial trades at a lower price-to-earnings ratio than United Security Bancshares, indicating that it is currently the more affordable of the two stocks.

Analyst Notes

This is a breakdown of the current ratings and recommendations for Capital One Financial and United Security Bancshares, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Capital One Financial 1 seven 13 0 2.57
United Security Bancshares 0 0 0 0 N / A

Capital One Financial currently has a consensus price target of $169.23, suggesting a potential upside of 36.42%. Given Capital One Financial’s likely higher upside, equity research analysts clearly believe Capital One Financial is more favorable than United Security Bancshares.

Summary

Capital One Financial beats United Security Bancshares on 12 out of 16 factors compared between the two stocks.

Capital One Financial Company Profile (Get a rating)

Capital One Financial Corporation operates as the financial services holding company for Capital One Bank (USA), National Association; and Capital One, National Association, which provides various financial products and services in the United States, Canada and the United Kingdom. It operates through three segments: Credit Cards, Consumer Banking and Business Banking. The company accepts checking accounts, money market deposits, negotiable withdrawal orders, savings deposits and term deposits. Its lending products include credit card loans; automotive and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and cash management and custody services. It serves consumers, small businesses and commercial customers through digital channels, branches, cafes and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and California. Capital One Financial Corporation was founded in 1988 and is headquartered in McLean, Virginia.

United Security Bancshares Company Profile (Get a rating)

United Security Bancshares operates as a bank holding company for United Security Bank, a state-chartered bank that provides a range of commercial banking services to businesses and the professional community, as well as individuals in California. The Company accepts a variety of deposit products, including personal and business checking accounts, savings accounts, interest-bearing negotiable promissory withdrawal accounts, money market accounts and term deposit certificates. It also offers real estate, commercial and industrial mortgages, building construction and consumer loans, as well as agricultural, installment and student loans. In addition, the Company offers online and mobile banking, safe deposit boxes, wire transfers, payroll direct deposit, cashier’s checks, cash management, travelers checks, money orders and services. foreign draft, as well as ATMs and ATM services. As of January 26, 2022, it operated 12 full-service branches in Fresno, Bakersfield, Campbell, Caruthers, Coalinga, Firebaugh, Mendota, Oakhurst, San Joaquin and Taft. The company was founded in 1987 and is based in Fresno, California.



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