Atlantic Union Bankshares (NASDAQ:AUB) & S&T Bancorp (NASDAQ:STBA) Financial Analysis

Atlantic Union Bankshares (NASDAQ:AUB) and S&T Bancorp (NASDAQ:STBA) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Atlantic Union Bankshares and S&T Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlantic Union Bankshares	0	1	4	0	2.80
S&T Bancorp	0	1	0	0	2.00

Atlantic Union Bankshares presently has a consensus price target of $42.00, indicating a potential upside of 1.73%. S&T Bancorp has a consensus price target of $41.00, indicating a potential downside of 3.82%. Given Atlantic Union Bankshares’ stronger consensus rating and higher probable upside, research analysts plainly believe Atlantic Union Bankshares is more favorable than S&T Bancorp.

Risk & Volatility

Atlantic Union Bankshares has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, S&T Bancorp has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Earnings and Valuation

This table compares Atlantic Union Bankshares and S&T Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlantic Union Bankshares	$777.34 million	4.77	$201.82 million	$2.41	17.13
S&T Bancorp	$392.73 million	4.15	$144.78 million	$3.51	12.15

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

Institutional and Insider Ownership

78.6% of Atlantic Union Bankshares shares are owned by institutional investors. Comparatively, 65.2% of S&T Bancorp shares are owned by institutional investors. 0.9% of Atlantic Union Bankshares shares are owned by insiders. Comparatively, 1.4% of S&T Bancorp 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 $1.36 per share and has a dividend yield of 3.3%. S&T Bancorp pays an annual dividend of $1.36 per share and has a dividend yield of 3.2%. Atlantic Union Bankshares pays out 56.4% of its earnings in the form of a dividend. S&T Bancorp pays out 38.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Atlantic Union Bankshares has raised its dividend for 14 consecutive years and S&T Bancorp has raised its dividend for 12 consecutive years. Atlantic Union Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Atlantic Union Bankshares and S&T Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlantic Union Bankshares	16.25%	8.85%	1.09%
S&T Bancorp	23.69%	10.25%	1.41%

Summary

Atlantic Union Bankshares beats S&T Bancorp on 11 of the 17 factors compared between the two stocks.

About Atlantic Union Bankshares

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, 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 debit and 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, mortgage banking, 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 Glen Allen, Virginia.

About S&T Bancorp

S&T Bancorp, Inc. operates as the bank holding company for S&T Bank that engages in the provision of retail and commercial banking products and services. The company operates through six segments: Commercial Real Estate, Commercial and Industrial, Commercial Construction, Business Banking, Consumer Real Estate, and Other Consumer. The company accepts time and demand deposits; and offers commercial and consumer loans, cash management services, and brokerage and trust services, as well as acts as guardian and custodian of employee benefits. It also manages private investment accounts for individuals and institutions. In addition, the company distributes life insurance and long-term disability income insurance products, as well as offers title insurance agency services to commercial customers; and acts as a reinsurer of credit life, accident, and health insurance policies. S&T Bancorp, Inc. was founded in 1902 and is headquartered in Indiana, Pennsylvania.