Territorial Bancorp (NASDAQ:TBNK) & United Community Bancorp (NASDAQ:UCBA) Critical Survey

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Territorial Bancorp (NASDAQ:TBNK) and United Community Bancorp (NASDAQ:UCBA) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Valuation and Earnings

This table compares Territorial Bancorp and United Community Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Territorial Bancorp $76.46 million 3.50 $19.21 million $2.03 13.68
United Community Bancorp N/A N/A N/A N/A N/A

Territorial Bancorp has higher revenue and earnings than United Community Bancorp.

Profitability

This table compares Territorial Bancorp and United Community Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Territorial Bancorp 26.26% 8.86% 1.02%
United Community Bancorp N/A N/A N/A

Institutional & Insider Ownership

45.7% of Territorial Bancorp shares are owned by institutional investors. Comparatively, 36.4% of United Community Bancorp shares are owned by institutional investors. 10.8% of Territorial Bancorp shares are owned by company insiders. Comparatively, 9.7% of United Community Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Territorial Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 3.2%. United Community Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. Territorial Bancorp pays out 43.3% of its earnings in the form of a dividend. Territorial Bancorp has increased its dividend for 6 consecutive years and United Community Bancorp has increased its dividend for 2 consecutive years. Territorial Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Territorial Bancorp and United Community Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Territorial Bancorp 0 2 0 0 2.00
United Community Bancorp 0 0 0 0 N/A

Territorial Bancorp presently has a consensus target price of $32.00, indicating a potential upside of 15.19%. Given Territorial Bancorp’s higher probable upside, research analysts plainly believe Territorial Bancorp is more favorable than United Community Bancorp.

Summary

Territorial Bancorp beats United Community Bancorp on 9 of the 10 factors compared between the two stocks.

Territorial Bancorp Company Profile

Territorial Bancorp, Inc. operates as the bank holding company for Territorial Savings Bank, which provides financial services to individuals, families, and businesses in Hawaii. Its business consists primarily of accepting deposits from the general public and investing those deposits, together with funds generated from operations and borrowings, in one- to four-family residential mortgage loans and investment securities. The firm operates through the following portfolio segments: Residential Mortgage; Construction, Commercial and Other Mortgage Loans; Home Equity Loans and Lines of Credit; and Consumer and Other. It also offers deposit accounts, including passbook and statement savings accounts, certificates of deposit, money market accounts, commercial, and regular checking accounts. The company was founded on November 3, 2008 and is headquartered in Honolulu, HI.

United Community Bancorp Company Profile

United Community Bancorp operates as the bank holding company for United Community Bank that provides various banking products and services to consumers and businesses in Southeastern Indiana. Its deposit products include noninterest-bearing demand accounts, including checking accounts; interest-bearing accounts, such as interest-bearing checking and money market accounts; regular savings accounts; and certificates of deposit, as well as municipal deposits. The company also provides one-to four-family residential real estate, multi-family real estate, nonresidential real estate and land, construction, agricultural, and commercial loans, as well as consumer loans comprising home equity loans and lines of credit, loans secured by savings accounts or certificates of deposit, new farm and garden equipment loans, new and used automobiles loans, recreational vehicle loans, and secured and unsecured personal loans. It operates through five branches located in Dearborn County and three branches located in adjacent Ripley County in Indiana. The company was founded in 1999 and is headquartered in Lawrenceburg, Indiana.

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