Critical Survey: Financial Institutions (NASDAQ:FISI) versus UBS (OTCMKTS:OUBSF)

Financial Institutions (NASDAQ:FISI) and UBS (OTCMKTS:OUBSF) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Profitability

This table compares Financial Institutions and UBS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Financial Institutions	13.72%	11.32%	0.82%
UBS	N/A	N/A	N/A

Institutional & Insider Ownership

60.5% of Financial Institutions shares are owned by institutional investors. 2.7% of Financial Institutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Financial Institutions and UBS”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Financial Institutions	$334.38 million	1.24	$50.26 million	$3.18	8.40
UBS	N/A	N/A	N/A	N/A	N/A

Financial Institutions has higher revenue and earnings than UBS.

Analyst Recommendations

This is a summary of current recommendations and price targets for Financial Institutions and UBS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Financial Institutions	0	2	0	0	2.00
UBS	0	0	0	0	0.00

Financial Institutions presently has a consensus price target of $23.50, indicating a potential downside of 12.02%. Given UBS’s higher probable upside, analysts clearly believe UBS is more favorable than Financial Institutions.

Summary

Financial Institutions beats UBS on 7 of the 8 factors compared between the two stocks.

About Financial Institutions

Financial Institutions, Inc. operates as a holding company for the Five Star Bank, a chartered bank that provides banking and financial services to individuals, municipalities, and businesses in New York. The company provides checking and savings account programs, including money market accounts, certificates of deposit, sweep investments, and individual retirement and other qualified plan accounts, as well as NOW accounts. Its loan products include term loans and lines of credit; short and medium-term commercial loans for working capital, business expansion, and purchase of equipment; commercial business loans to the agricultural industry; commercial mortgage loans; one-to-four family residential mortgage loans, home improvement loans, closed-end home equity loans, and home equity lines of credit; and consumer loans, such as automobile, secured installment, and personal loans. The company offers personal insurance products, including automobile, homeowners, boat, recreational vehicle, landlord, and umbrella coverage; commercial insurance comprising property, liability, automobile, inland marine, workers compensation, bonds, crop, and umbrella insurance products; and financial services, such as life and disability insurance, medicare supplements, long-term care, annuities, mutual funds, and retirement programs. In addition, it offers customized investment advisory, wealth management, investment consulting, and retirement plan services, as well as operates a real estate investment trust that holds residential mortgages and commercial real estate loans. Financial Institutions, Inc. was founded in 1817 and is headquartered in Warsaw, New York.