Critical Review: United Security Bancshares (NASDAQ:UBFO) versus DBS Group (OTCMKTS:DBSDY)

United Security Bancshares (NASDAQ:UBFO) and DBS Group (OTCMKTS:DBSDY) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Dividends

United Security Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 5.0%. DBS Group pays an annual dividend of $6.20 per share and has a dividend yield of 4.8%. United Security Bancshares pays out 47.1% of its earnings in the form of a dividend.

Profitability

This table compares United Security Bancshares and DBS Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Security Bancshares	25.78%	13.96%	1.45%
DBS Group	N/A	N/A	N/A

Valuation & Earnings

This table compares United Security Bancshares and DBS Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Security Bancshares	$65.95 million	2.53	$19.80 million	$1.02	9.46
DBS Group	$25.60 billion	3.62	$7.49 billion	N/A	N/A

DBS Group has higher revenue and earnings than United Security Bancshares.

Risk & Volatility

United Security Bancshares has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, DBS Group has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for United Security Bancshares and DBS Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Security Bancshares	0	0	0	0	0.00
DBS Group	0	0	0	1	4.00

Insider & Institutional Ownership

30.9% of United Security Bancshares shares are owned by institutional investors. Comparatively, 0.2% of DBS Group shares are owned by institutional investors. 20.1% of United Security Bancshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

DBS Group beats United Security Bancshares on 7 of the 13 factors compared between the two stocks.

About United Security Bancshares

United Security Bancshares operates as the bank holding company for United Security Bank, a state-chartered bank that provides a range of commercial banking services to the business and professional community, and individuals in California. The company accepts various deposit products, including personal and business checking accounts, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit. It also provides real estate mortgage, commercial and industrial, real estate construction and development, and consumer loans, as well as agricultural, installment, and student loans. In addition, the company offers online and mobile banking, safe deposit boxes, wire transfers, payroll direct deposit, cashier's check, cash management, and foreign draft services, as well as interactive teller machines; and person-to-person and bank-to-bank transfers for consumer customers. United Security Bancshares was founded in 1987 and is headquartered in Fresno, California.

About DBS Group

DBS Group Holdings Ltd provides commercial banking and financial services in Singapore, Hong Kong, rest of Greater China, South and Southeast Asia, and internationally. The company’s Consumer Banking/Wealth Management segment offers banking and related financial services, including current and savings accounts, fixed deposits, loans and home finance, cards, payments, investment, and insurance products for individual customers. Its Institutional Banking segment provides financial services and products for bank and non-bank financial institutions, government-linked companies, large corporates, and small and medium sized businesses. Its products and services comprise short-term working capital financing and specialized lending; cash management, trade finance, and securities and fiduciary services; treasury and markets products; and corporate finance and advisory banking, as well as capital markets solutions. The company’s Treasury Markets segment is involved in the structuring, market-making, and trading in a range of treasury products. DBS Group Holdings Ltd was founded in 1968 and is headquartered in Singapore.