Analyzing United Financial Bancorp (UBNK) and Its Rivals

United Financial Bancorp (NASDAQ: UBNK) is one of 341 public companies in the “Banks” industry, but how does it contrast to its competitors? We will compare United Financial Bancorp to similar businesses based on the strength of its institutional ownership, analyst recommendations, risk, profitability, earnings, dividends and valuation.

Dividends

United Financial Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.7%. United Financial Bancorp pays out 40.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 34.6% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares United Financial Bancorp and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
United Financial Bancorp $242.24 million $49.66 million 14.81
United Financial Bancorp Competitors $6.26 billion $916.25 million 349.35

United Financial Bancorp’s competitors have higher revenue and earnings than United Financial Bancorp. United Financial Bancorp is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for United Financial Bancorp and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Financial Bancorp 0 1 1 0 2.50
United Financial Bancorp Competitors 2257 9114 9201 377 2.37

United Financial Bancorp currently has a consensus target price of $19.00, suggesting a potential upside of 8.70%. As a group, “Banks” companies have a potential downside of 2.60%. Given United Financial Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe United Financial Bancorp is more favorable than its competitors.

Risk & Volatility

United Financial Bancorp has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, United Financial Bancorp’s competitors have a beta of 0.82, indicating that their average stock price is 18% less volatile than the S&P 500.

Insider & Institutional Ownership

64.4% of United Financial Bancorp shares are held by institutional investors. Comparatively, 52.2% of shares of all “Banks” companies are held by institutional investors. 3.4% of United Financial Bancorp shares are held by insiders. Comparatively, 10.3% of shares of all “Banks” companies are held by 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.

Profitability

This table compares United Financial Bancorp and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Financial Bancorp 22.67% 8.87% 0.88%
United Financial Bancorp Competitors 18.68% 8.64% 0.93%

Summary

United Financial Bancorp competitors beat United Financial Bancorp on 8 of the 15 factors compared.

United Financial Bancorp Company Profile

United Financial Bancorp, Inc. is a bank holding company. The Company, through its subsidiary United Bank (the Bank) and various subsidiaries, delivers financial services to individuals, families and businesses in Connecticut and Massachusetts, including retail, commercial and consumer banking, as well as financial advisory services. The Company’s operations include the delivery of loan and deposit products to customers. Personal and business banking customers also bank with the Company online through its Website at www.bankatunited.com, as well as its mobile and telephone banking channels. The Company originates commercial loans, commercial real estate loans, residential and commercial construction loans, residential real estate loans collateralized by one- to four-family residences, home equity lines of credit and fixed rate loans and other consumer loans. The principal lending activity of the Bank is to originate loans secured by first mortgages on one- to four-family residences.

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