United Security Bancshares (NASDAQ:UBFO) vs. Arrow Financial (NASDAQ:AROW) Direct Investigation

United Security Bancshares (NASDAQ:UBFO – Get Rating) and Arrow Financial (NASDAQ:AROW – Get Rating) are both small cap financial companies, but which is the better company? We’ll compare the two companies based on their dividend strength, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Insider and Institutional Ownership

37.0% of United Security Bancshares shares are held by institutional investors. By comparison, 43.8% of Arrow Financial’s shares are held by institutional investors. 20.4% of the shares of United Security Bancshares are held by insiders of the company. By comparison, 4.2% of Arrow Financial’s stock is held by company insiders. Strong institutional ownership is an indication that endowments, large fund managers, and hedge funds believe a company will outperform the market over the long term.


United Security Bancshares pays an annual dividend of $0.44 per share and has a dividend yield of 6.2%. Arrow Financial pays an annual dividend of $1.08 per share and has a dividend yield of 3.2%. United Security Bancshares pays 63.8% of its profits as a dividend. Arrow Financial pays 36.4% 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. Arrow Financial has increased its dividend for 21 consecutive years.

Analyst Recommendations

This is a breakdown of the current ratings for United Security Bancshares and Arrow Financial, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
United Security Bancshares 0 0 0 0 N / A
Financial Arrow 0 0 0 0 N / A

Volatility and risk

United Security Bancshares has a beta of 0.65, indicating its stock price is 35% less volatile than the S&P 500. By comparison, Arrow Financial has a beta of 0.6, indicating its stock price is 40 % less volatile than the S&P 500.

Valuation and benefits

This table compares the revenue, earnings per share (EPS) and valuation of United Security Bancshares and Arrow Financial.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
United Security Bancshares $41.12 million 2.96 $10.10 million $0.69 10:35 a.m.
Financial Arrow $147.92 million 3.69 $49.86 million $2.97 11:47

Arrow Financial has higher revenue and profit than United Security Bancshares. United Security Bancshares trades at a lower price-to-earnings ratio than Arrow Financial, indicating that it is currently the more affordable of the two stocks.


This table compares the net margins, return on equity and return on assets of United Security Bancshares and Arrow Financial.

Net margins Return on equity return on assets
United Security Bancshares 27.32% 10.08% 0.90%
Financial Arrow 32.14% 13.19% 1.17%


Arrow Financial beats United Security Bancshares on 11 out of 14 factors compared between the two stocks.

About United Security Bancshares

(Get an evaluation)

United Security Bancshares operates as a bank holding company for United Security Bank, a state-chartered bank that provides a range of commercial banking services to businesses and the professional community, as well as individuals in California. The Company accepts a variety of deposit products, including personal and business checking accounts, savings accounts, interest-bearing negotiable promissory withdrawal accounts, money market accounts and term deposit certificates. It also offers real estate, commercial and industrial, building construction and consumer mortgages, as well as agricultural, installment and student loans. In addition, the Company offers online and mobile banking, safe deposit boxes, wire transfers, direct payroll deposits, cashier’s checks, cash management services, travelers checks, money orders and foreign drafts, as well as ATMs and ATM services. As of January 26, 2022, it operated 12 full-service branches in Fresno, Bakersfield, Campbell, Caruthers, Coalinga, Firebaugh, Mendota, Oakhurst, San Joaquin and Taft. The company was founded in 1987 and is based in Fresno, California.

About Arrow Financial

(Get an evaluation)

Arrow Financial Corporation, a bank holding company, provides corporate and personal banking, financial products and services. The Company’s deposit products include demand deposits, interest-bearing checking accounts, savings deposits, term deposits and other term deposits. Its lending activities include commercial loans, such as term loans, term notes and lines of credit; and commercial real estate loans to finance real estate purchases, refinances, expansions and improvements of commercial properties, as well as commercial construction and land development loans to finance projects. The Company’s lending businesses also include consumer installment loans to finance personal expenses, personal lines of credit, overdraft protection and automobile loans; and residential real estate loans, home fixed loans and home equity lines of credit for consumers to finance home renovations, debt consolidation, education and other uses. Additionally, it maintains an indirect lending program; and sells residential real estate loan originations in the secondary market. In addition, the company provides retirement planning, trust and estate administration services to individuals; and pension, profit sharing and corporate benefits administration services. In addition, it offers insurance agency services including group healthcare policies and life insurance products, as well as property and casualty insurance products; and investment advisory services to its proprietary mutual funds, as well as holds a real estate investment trust. The company operates in the upstate New York region in Warren, Washington, Saratoga, Essex, Clinton, Rensselaer, Albany and Schenectady counties and surrounding areas. It has 26 bank branches; and leases 12 bank branches, as well as two residential loan origination offices. Arrow Financial Corporation was founded in 1851 and is headquartered in Glens Falls, New York.

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