Head-to-Head Analysis: United Community Banks (NASDAQ:UCBI) vs. German American Bancorp (NASDAQ:GABC)

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United Community Banks (NASDAQ:UCBI – Get Rating) and German American Bancorp (NASDAQ:GABC – Get Rating) are both finance companies, but which company is better? We’ll compare the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk, and analyst recommendations.

Volatility and risk

United Community Banks has a beta of 1.07, suggesting its stock price is 7% more volatile than the S&P 500. In comparison, German American Bancorp has a beta of 0.65, suggesting its stock price is 35% less volatile than the S&P 500.

Analyst Notes

This is a breakdown of recent recommendations and price targets for United Community Banks and German American Bancorp, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
United Community Banks 0 1 0 0 2.00
German-American Bancorp 0 0 0 0 N / A

United Community Banks currently has a consensus price target of $37.00, indicating a potential upside of 19.43%. Given the higher possible upside of United Community Banks, analysts clearly believe that United Community Banks is more favorable than German American Bancorp.

Insider and Institutional Ownership

79.5% of United Community Banks shares are held by institutional investors. By comparison, 38.7% of German American Bancorp’s shares are held by institutional investors. 0.5% of the shares of United Community Banks are held by insiders. By comparison, 6.7% of German American Bancorp’s shares are held by insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company is poised for long-term growth.

Dividends

United Community Banks pays an annual dividend of $0.84 per share and has a dividend yield of 2.7%. German American Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 2.6%. United Community Banks pays 32.6% of its profits as a dividend. German American Bancorp pays 33.5% 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. United Community Banks has increased its dividend for 2 consecutive years and German American Bancorp has increased its dividend for 10 consecutive years. United Community Banks is clearly the best dividend stock, given its higher yield and lower payout ratio.

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of United Community Banks and German American Bancorp.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
United Community Banks $736.61 million 4.46 $269.80 million $2.58 12.01
German-American Bancorp $229.84 million 4.48 $84.14 million $2.75 12.70

United Community Banks has higher revenue and profit than German American Bancorp. United Community Banks trades at a lower price-to-earnings ratio than German American Bancorp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares the net margins, return on equity, and return on assets of United Community Banks and German American Bancorp.

Net margins Return on equity return on assets
United Community Banks 32.10% 11.93% 1.25%
German-American Bancorp 30.85% 13.30% 1.59%

Summary

United Community Banks beats German American Bancorp on 8 of the 15 factors compared between the two stocks.

About United Community Banks (Get a rating)

United Community Banks, Inc. operates as the financial holding company for United Community Bank which provides financial products and services to the commercial, retail, government, education, energy, healthcare, health and real estate. The Company accepts various deposit products including checking, savings, money market and other deposit accounts. It also offers lending services, including home, consumer and commercial loans, to individuals, small businesses, mid-sized commercial enterprises and non-profit organizations, as well as secured and unsecured loans and mortgage loans. In addition, the company issues loans partially secured by the SBA and USDA loan programs. Additionally, it provides wealth management services including financial planning, personalized portfolio management and investment advice; fiduciary services for managing fiduciary assets; investment products other than deposits; and insurance products, including life insurance, long-term care insurance and tax-deferred annuities, as well as investments in residential and commercial mortgage-backed securities, assets, US treasury, US agency and municipal bonds. In addition, the company offers reinsurance on a property insurance contract; insurance agency services; brokerage services; and payment processing, merchant, wire transfer, private banking and other related financial services. It operates through a network of 171 branches in Florida, Georgia, North Carolina, South Carolina and Tennessee. United Community Banks, Inc. was founded in 1950 and is headquartered in Blairsville, Georgia.

About German American Bancorp (Get a rating)

German-American Bancorp logoGerman American Bancorp, Inc. operates as a bank holding company for German American Bank which provides retail and commercial banking services. The Company operates through three segments: Core Banking, Wealth Management Services and Insurance Operations. The Core Banking segment accepts deposits from the general public; and issues consumer, commercial and farm, commercial and farm real estate and residential mortgages, as well as sells residential mortgages in the secondary market. The Wealth Management segment provides trust, investment advisory, brokerage and retirement planning services. The Insurance Operations segment provides a range of property and casualty insurance products to individuals and businesses. As of December 31, 2021, the company operated 77 banking offices in 19 contiguous southern Indiana counties; and 14 Kentucky counties. German American Bancorp, Inc. was founded in 1910 and is based in Jasper, Indiana.



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