BankUnited (NYSE:BKU) vs. Salisbury Bancorp (NASDAQ:SAL) Critical Survey


United Bank (NYSE: BKUGet a rating) and Salisbury Bancorp (NASDAQ: SALGet a rating) are both finance companies, but which is the superior investment? We’ll compare the two companies based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Dividends

BankUnited pays an annual dividend of $1.00 per share and has a dividend yield of 2.8%. Salisbury Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 2.8%. BankUnited pays 23.5% of its profits as a dividend. Salisbury Bancorp pays 23.8% 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. BankUnited has increased its dividend for 1 consecutive year and Salisbury Bancorp has increased its dividend for 3 consecutive years. BankUnited is clearly the better dividend-paying stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

97.3% of BankUnited shares are held by institutional investors. By comparison, 23.1% of Salisbury Bancorp’s shares are held by institutional investors. 0.9% of BankUnited shares are held by company insiders. By comparison, 8.8% of Salisbury Bancorp’s shares are held by company insiders. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a company is poised for long-term growth.

Profitability

This table compares the net margins, return on equity and return on assets of BankUnited and Salisbury Bancorp.

Net margins Return on equity return on assets
United Bank 35.89% 12.61% 1.07%
Salisbury Bancorp 27.34% 11.40% 1.03%

Analyst Notes

This is a breakdown of current recommendations and price targets for BankUnited and Salisbury Bancorp, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
United Bank 3 3 1 0 1.71
Salisbury Bancorp 0 0 0 0 N / A

BankUnited currently has a consensus target price of $45.86, indicating a potential upside of 30.35%. Given BankUnited’s possible higher upside, research analysts clearly believe that BankUnited is more favorable than Salisbury Bancorp.

Volatility and risk

BankUnited has a beta of 1.26, meaning its stock price is 26% more volatile than the S&P 500. Comparatively, Salisbury Bancorp has a beta of 0.79, meaning its stock price is 21% less volatile than the S&P 500.

Benefits and evaluation

This table compares gross revenue, earnings per share and valuation of BankUnited and Salisbury Bancorp.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
United Bank $1.09 billion 2.63 $414.98 million $4.25 8.28
Salisbury Bancorp $55.57 million 2.37 $16.47 million $2.69 8.48

BankUnited has higher revenue and earnings than Salisbury Bancorp. BankUnited trades at a lower price-to-earnings ratio than Salisbury Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

BankUnited beats Salisbury Bancorp on 13 of the 16 factors compared between the two stocks.

About Bank United (Get a rating)

BankUnited, Inc. operates as a bank holding company for BankUnited, a national banking association that provides a range of banking services in the United States. The Company offers deposit products, such as checks, money market deposits and savings accounts; certificates of deposit; and treasury, commercial payment and cash management services. Its loan portfolio includes commercial loans, including equipment loans, secured and unsecured lines of credit, formula-based loans, term loans and lines of credit for commercial real estate occupied by the owner, mortgage warehouse lines, letters of credit, commercial credit cards, small business loans, government and USDA product offerings, export-import bank finance products , trade finance and credit facilities for financing business acquisitions; commercial real estate loans; residential mortgages; and other consumer loans. The company also offers online, mobile and telephone banking services. As of December 31, 2021, it operated through a network of 63 banking centers located in 13 counties in Florida; and 4 banking centers in the New York metropolitan area. The company was previously known as BU Financial Corporation. BankUnited, Inc. was incorporated in 2009 and is headquartered in Miami Lakes, Florida.

About Salisbury Bancorp (Get a rating)

Salisbury Bancorp, Inc. operates as a bank holding company for Salisbury Bank and Trust Company which provides commercial banking, consumer finance, retail banking, and trust and wealth advisory services. It offers various deposit products to individuals and businesses. The company also provides loans, such as residential and commercial real estate loans; building loans; working capital loans; equipment loans; and consumer loans, including home equity loans and lines of credit, secured loans, and auto and personal installment loans. In addition, it offers a range of fiduciary services, including trust and estate administration, wealth advice and investment management services to individuals, families, businesses and institutions. In addition, the Company provides additional depositor-related services, including landlord/tenant accounts and lease guarantee services, merchant services, payroll services, ATM services, telephone banking, Internet banking, Internet bill payment services, person-to-person payments, bank-to-bank transfers, mobile banking with remote deposit and online financial management with account aggregation services, as well as cash management services, including remote deposit capture, ACH issuance, wire transfers and positive pay services. It operates through a network of 14 banking offices and 10 ATMs located in Litchfield County, Connecticut; Dutchess, Orange, and Ulster Counties, New York; and Berkshire County, Massachusetts. The company was founded in 1848 and is based in Lakeville, Connecticut.



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