Head to Head Survey: Provident Financial (PROV) vs. United Community Bancorp (UCBA)

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United Community Bancorp (NASDAQ:UCBA) and Provident Financial (NASDAQ:PROV) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.

Valuation & Earnings

This table compares United Community Bancorp and Provident Financial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United Community Bancorp N/A N/A N/A N/A N/A
Provident Financial $64.61 million 2.17 $2.13 million $0.70 26.61

Provident Financial has higher revenue and earnings than United Community Bancorp.

Analyst Ratings

This is a summary of current ratings for United Community Bancorp and Provident Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Community Bancorp 0 0 0 0 N/A
Provident Financial 0 0 1 0 3.00

Provident Financial has a consensus price target of $21.00, indicating a potential upside of 12.72%. Given Provident Financial’s higher possible upside, analysts plainly believe Provident Financial is more favorable than United Community Bancorp.

Dividends

United Community Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. Provident Financial pays an annual dividend of $0.56 per share and has a dividend yield of 3.0%. Provident Financial pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. United Community Bancorp has raised its dividend for 2 consecutive years and Provident Financial has raised its dividend for 8 consecutive years. Provident Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

36.4% of United Community Bancorp shares are held by institutional investors. Comparatively, 55.9% of Provident Financial shares are held by institutional investors. 9.7% of United Community Bancorp shares are held by insiders. Comparatively, 14.4% of Provident Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
United Community Bancorp N/A N/A N/A
Provident Financial 11.15% 5.72% 0.59%

Summary

Provident Financial beats United Community Bancorp on 10 of the 11 factors compared between the two stocks.

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.

Provident Financial Company Profile

Provident Financial Holdings, Inc. operates as the holding company for Provident Savings Bank, F.S.B. that provides community and mortgage banking services to consumers and small to mid-sized businesses in the Inland Empire region of Southern California. It operates through two segments, Provident Bank and Provident Bank Mortgage. The company's deposit products include checking, savings, and money market accounts, as well as time deposits; and loan portfolio consists of single-family, multi-family, commercial real estate, construction, commercial business, consumer, and other mortgage loans. It also originates, purchases, and sells single-family mortgage loans, including second mortgages and equity lines of credit. In addition, the company offers investment services comprising the sale of investment products, such as annuities and mutual funds; and trustee services for real estate transactions. It operates through 13 full-service banking offices in Riverside County and 1 full-service banking office in San Bernardino County. The company was founded in 1956 and is based in Riverside, California.

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