Contrast between Atlantic Union Bankshares (NASDAQ:AUB) and Enterprise Financial Services (NASDAQ:EFSC)


Atlantic Union Bankshares (NASDAQ:AUB – Get Rating) and Enterprise Financial Services (NASDAQ:EFSC – Get Rating) are both finance companies, but which is the best investment? We’ll compare the two companies based on their dividend strength, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.

Insider and Institutional Ownership

69.6% of Atlantic Union Bankshares shares are held by institutional investors. By comparison, 67.1% of Enterprise Financial Services shares are held by institutional investors. 1.0% of the shares of Atlantic Union Bankshares are held by insiders of the company. By comparison, 5.9% of Enterprise Financial Services stock is held by company insiders. Strong institutional ownership indicates that endowments, hedge funds, and large money managers believe a stock is poised for long-term growth.

Volatility and risk

Atlantic Union Bankshares has a beta of 1.1, meaning its stock price is 10% more volatile than the S&P 500. By comparison, Enterprise Financial Services has a beta of 1.17, meaning its stock price is 17% more volatile than the S&P 500.

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of Atlantic Union Bankshares and Enterprise Financial Services.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Atlantic Union Banking Stocks $718.16 million 3.51 $263.92 million $3.12 10.77
Business Financial Services $450.97 million 3.43 $133.05 million $4.17 9.97

Atlantic Union Bankshares has higher revenues and profits than Enterprise Financial Services. Enterprise Financial Services trades at a lower price-to-earnings ratio than Atlantic Union Bankshares, indicating that it is currently the more affordable of the two stocks.

Analyst Notes

This is a summary of recent recommendations for Atlantic Union Bankshares and Enterprise Financial Services, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Atlantic Union Banking Stocks 0 0 3 0 3.00
Business Financial Services 0 0 2 0 3.00

Atlantic Union Bankshares currently has a consensus target price of $44.25, indicating a potential upside of 31.66%. Enterprise Financial Services has a consensus target price of $58.00, indicating a potential upside of 39.52%. Given Enterprise Financial Services’ possible higher upside, analysts clearly believe that Enterprise Financial Services is more favorable than Atlantic Union Bankshares.

Profitability

This table compares the net margins, return on equity and return on assets of Atlantic Union Bankshares and Enterprise Financial Services.

Net margins Return on equity return on assets
Atlantic Union Banking Stocks 35.51% 9.94% 1.33%
Business Financial Services 31.42% 13.65% 1.46%

Dividends

Atlantic Union Bankshares pays an annual dividend of $1.12 per share and has a dividend yield of 3.3%. Enterprise Financial Services pays an annual dividend of $0.88 per share and has a dividend yield of 2.1%. Atlantic Union Bankshares pays 35.9% of its earnings as a dividend. Enterprise Financial Services pays 21.1% 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. Atlantic Union Bankshares has increased its dividend for 12 consecutive years and Enterprise Financial Services has increased its dividend for 5 consecutive years. Atlantic Union Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Atlantic Union Bankshares beats Enterprise Financial Services on 9 out of 16 factors compared between the two stocks.

About Atlantic Union Bankshares

(Get a rating)

Atlantic Union Bankshares Corporation operates as a holding company for Atlantic Union Bank which provides banking and related financial services to consumers and businesses. The Company accepts a variety of deposit products, including checking, savings, NOW, term deposit, and money market accounts; certificates of deposit; and other deposit services. It also offers loans for commercial, industrial, residential mortgage and consumer purposes. In addition, the company offers credit cards, automated teller machine (ATM) services, mobile and internet banking, online bill payment services, as well as financial planning, trust and management services. of heritage. In addition, it provides securities, brokerage and investment advisory products and services; and creates and sells residential lending products in the secondary market. As of February 25, 2022, it operated 130 branches and approximately 150 ATMs in Virginia, Maryland and North Carolina. 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 Business Financial Services

(Get a rating)

Business financial services logoEnterprise Financial Services Corp operates as a financial holding company for Enterprise Bank & Trust which offers banking and wealth management services to individuals and businesses. The company offers checking, savings and money market accounts, as well as certificates of deposit. It also offers commercial and industrial real estate, commercial, construction and land development, residential real estate, agricultural and consumer loans. In addition, the company offers cash management and international trade services; tax credit brokerage services consisting of the acquisition of tax credits and the sale of these tax credits to clients; and financial and estate planning, investment management and trust services to businesses, individuals, institutions, pension plans and not-for-profit organizations. In addition, it offers fiduciary, financial advisory and merchant processing services; and debit and credit cards. In addition, the company provides international banking, insurance, internet and mobile banking, remote deposit collection, positive payment, fraud detection and prevention, automated payments, imaging checks and imaging of statements and documents; and cash management products, controlled disbursements, repurchase agreements and scanning investment accounts. It operates banking sites and administrative offices in market areas of Arizona, California, Kansas, Missouri, Nevada and New Mexico, as well as a network of SBA loan origination offices and of filing production offices in various states. Enterprise Financial Services Corp was founded in 1988 and is headquartered in Clayton, Missouri.



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