Reviewing Equity Bancshares (NASDAQ:EQBK) and Atlantic Union Bankshares (NASDAQ:AUB)

Atlantic Union Bankshares (NASDAQ:AUBGet Free Report) and Equity Bancshares (NASDAQ:EQBKGet Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Atlantic Union Bankshares 19.31% 9.51% 1.13%
Equity Bancshares 3.43% 11.82% 0.98%

Valuation and Earnings

This table compares Atlantic Union Bankshares and Equity Bancshares’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atlantic Union Bankshares $696.27 million 3.54 $201.82 million $2.54 12.94
Equity Bancshares $227.58 million 2.09 $7.82 million $0.47 65.68

Atlantic Union Bankshares has higher revenue and earnings than Equity Bancshares. Atlantic Union Bankshares is trading at a lower price-to-earnings ratio than Equity Bancshares, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Atlantic Union Bankshares has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Equity Bancshares has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Atlantic Union Bankshares and Equity Bancshares, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlantic Union Bankshares 0 1 2 0 2.67
Equity Bancshares 0 2 0 0 2.00

Atlantic Union Bankshares currently has a consensus price target of $35.75, suggesting a potential upside of 8.76%. Equity Bancshares has a consensus price target of $30.00, suggesting a potential downside of 2.82%. Given Atlantic Union Bankshares’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Atlantic Union Bankshares is more favorable than Equity Bancshares.

Institutional & Insider Ownership

77.6% of Atlantic Union Bankshares shares are owned by institutional investors. Comparatively, 62.0% of Equity Bancshares shares are owned by institutional investors. 0.9% of Atlantic Union Bankshares shares are owned by insiders. Comparatively, 8.0% of Equity Bancshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Atlantic Union Bankshares pays an annual dividend of $1.28 per share and has a dividend yield of 3.9%. Equity Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 1.6%. Atlantic Union Bankshares pays out 50.4% of its earnings in the form of a dividend. Equity Bancshares pays out 102.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Atlantic Union Bankshares is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Atlantic Union Bankshares beats Equity Bancshares on 13 of the 16 factors compared between the two stocks.

About Atlantic Union Bankshares

(Get Free Report)

Atlantic Union Bankshares Corporation operates as the bank holding company for Atlantic Union Bank that provides banking and related financial products and services to consumers and businesses in the United States. It operates in two segments, Wholesale Banking and Consumer Banking. The company accepts various deposit products, including checking, savings, NOW, time deposit, and money market accounts; certificates of deposit; and other depository services. It also provides loans for commercial, industrial, residential mortgage, and consumer purposes, as well as credit cards. In addition, it provides treasury management and capital market, wealth management, private banking, trust, financial and retirement planning, brokerage, investment management, equipment finance, and insurance products and services. The company offers products and services through full-service branches and ATMs, as well as through its mobile and internet banking. The company was formerly known as Union Bankshares Corporation and changed its name to Atlantic Union Bankshares Corporation in May 2019. Atlantic Union Bankshares Corporation was founded in 1902 and is headquartered in Richmond, Virginia.

About Equity Bancshares

(Get Free Report)

Equity Bancshares, Inc. operates as the bank holding company for Equity Bank that provides a range of banking, mortgage banking, and financial services to individual and corporate customers. The company accepts various demand, savings, money market, and time deposits. Its loan products include commercial and industrial, commercial real estate-backed, commercial lines of credit, working capital, term, equipment financing, acquisition, expansion and development, borrowing base, real estate construction, homebuilder, agricultural, government guaranteed, and other loan products to national and regional companies, restaurant franchisees, hoteliers, real estate developers, manufacturing and industrial companies, agribusiness companies, and other businesses. The company's loan products also comprise various consumer loans to individuals and professionals, including residential real estate loans, home equity loans and lines of credit, installment loans, unsecured and secured personal lines of credit, overdraft protection, and letters of credit. It also provides debit cards; online banking solutions, such as access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; mobile banking solutions comprising remote check deposits with mobile bill pay; ATMs; and treasury management, wire transfer, automated clearing house, and stop payment services. In addition, the company offers cash management deposit products, such as lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts, as well as banking services through telephone, mail, and personal appointments. It operates a network of branches in Arkansas, Kansas, Missouri, and Oklahoma. The company was founded in 2002 and is headquartered in Wichita, Kansas.

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