United Bancorporation of Alabama (OTCMKTS:UBAB) vs. Western Alliance Bancorporation (NYSE:WAL) Head-To-Head Contrast

United Bancorporation of Alabama (OTCMKTS:UBAB) and Western Alliance Bancorporation (NYSE:WAL) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Profitability

This table compares United Bancorporation of Alabama and Western Alliance Bancorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Bancorporation of Alabama	36.17%	31.11%	2.34%
Western Alliance Bancorporation	16.74%	16.33%	1.27%

Risk and Volatility

United Bancorporation of Alabama has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, Western Alliance Bancorporation has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500.

Institutional and Insider Ownership

5.5% of United Bancorporation of Alabama shares are owned by institutional investors. Comparatively, 79.2% of Western Alliance Bancorporation shares are owned by institutional investors. 1.5% of Western Alliance Bancorporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares United Bancorporation of Alabama and Western Alliance Bancorporation’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Bancorporation of Alabama	$87.26 million	1.69	$31.55 million	$8.83	4.73
Western Alliance Bancorporation	$4.32 billion	1.53	$722.40 million	$6.54	9.13

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

Analyst Ratings

This is a breakdown of recent ratings for United Bancorporation of Alabama and Western Alliance Bancorporation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Bancorporation of Alabama	0	0	0	0	N/A
Western Alliance Bancorporation	0	3	12	0	2.80

Western Alliance Bancorporation has a consensus target price of $65.06, suggesting a potential upside of 8.90%. Given Western Alliance Bancorporation’s higher possible upside, analysts plainly believe Western Alliance Bancorporation is more favorable than United Bancorporation of Alabama.

Dividends

United Bancorporation of Alabama pays an annual dividend of $0.70 per share and has a dividend yield of 1.7%. Western Alliance Bancorporation pays an annual dividend of $1.48 per share and has a dividend yield of 2.5%. United Bancorporation of Alabama pays out 7.9% of its earnings in the form of a dividend. Western Alliance Bancorporation pays out 22.6% 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. Western Alliance Bancorporation has increased its dividend for 3 consecutive years. Western Alliance Bancorporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Western Alliance Bancorporation beats United Bancorporation of Alabama on 10 of the 16 factors compared between the two stocks.

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.

About Western Alliance Bancorporation

Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. It operates through Commercial and Consumer Related segments. The company offers deposit products, including checking, savings, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts; demand deposits; and treasury management and residential mortgage products and services. It also provides commercial and industrial loan products, such as working capital lines of credit, loans to technology companies, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans; commercial real estate loans, which are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties; construction and land development loans for single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments; and consumer loans. In addition, the company provides other financial services, such as internet banking, wire transfers, electronic bill payment and presentment, funds transfer and other digital payment offerings, lock box services, courier, and cash management services. Further, the company holds certain investment securities, municipal and non-profit loans, and leases; invests primarily in low-income housing tax credits and small business investment corporations; and holds certain real estate loans and related securities. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona.