United Bankshares vs Credit Acceptance

This page compares United Bankshares and Credit Acceptance Corp. across business models, financial performance, and market context, offering a neutral and accessible overview. It explains each company's approach, industry factors, and competitive landscape, without advocacy. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

UBSI

Metric

CACC

$5.68B

Market Cap

$4.88B

-4.39%

Potential Profit

5.50%

Hold

Analyst Rating

Hold

Investment Analysis

United Bankshares

UBSI

Pros

United Bankshares has demonstrated strong organic growth, with record third-quarter earnings surpassing analyst expectations and driving a recent analyst upgrade.
The company maintains a solid balance sheet, with a stable book value per share and a price-to-book ratio below one, suggesting potential undervaluation.
United Bankshares offers a competitive dividend yield above 3.8%, supported by consistent profitability and a conservative payout ratio.

Considerations

Analyst consensus is a 'hold', with limited upside forecast and only modest projected price appreciation over the next year.
The bank's return on equity and return on assets remain below industry averages, indicating less efficient capital utilisation compared to peers.
United Bankshares operates primarily in regional markets, making it vulnerable to local economic fluctuations and interest rate changes.

Credit Acceptance

CACC

Pros

Credit Acceptance has a unique business model focused on subprime auto lending, which generates high interest margins and strong cash flow generation.
The company maintains a robust balance sheet with significant liquidity and a history of consistent revenue growth despite economic cycles.
Credit Acceptance has demonstrated resilience in downturns, supported by a disciplined underwriting approach and a diversified loan portfolio.

Considerations

The subprime lending sector is highly sensitive to economic downturns, with increased risk of loan defaults during periods of rising unemployment.
Credit Acceptance faces regulatory scrutiny and potential legal risks due to its focus on high-risk borrowers and past litigation history.
The company's valuation is relatively high compared to peers, with limited dividend yield and potential for volatility in earnings.

About The Companies

United Bankshares (UBSI)

United Bankshares, Inc. (UBSI) is a financial holding company operating primarily through its subsidiary, United Bank. It is a significant player in the community banking space, offering a comprehensive suite of financial services to individuals and businesses. These services include standard deposit accounts, personal and commercial loans, real estate and construction lending, and brokerage and trust services. With a network of over 240 locations, the bank has a substantial presence across several US states, including Virginia, Maryland, and the Carolinas. For investors, UBSI represents a regional banking institution with diversified revenue streams. However, like any financial stock, its performance can be influenced by economic cycles, interest rate changes, and regulatory shifts. It's important to remember that past performance is not indicative of future returns, and the value of investments can go down as well as up.

Credit Acceptance (CACC)

Credit Acceptance Corporation (CACC) is a US-listed specialty finance company that primarily finances used-car purchases for buyers with challenged or subprime credit through a network of independent dealers. With a market capitalisation around $5.6 billion, the firm generates revenue from interest income, fees and ancillary finance activities tied to its receivables. Investors should know the business mixes higher-yielding loan economics with greater credit and collection risk: returns can be attractive in benign credit cycles but are sensitive to unemployment, interest rates and vehicle market conditions. The company’s underwriting approach, dealer relationships and portfolio performance are key monitoring points. Regulatory and legal developments, as well as shifts in used-car values, can materially affect earnings. This summary is educational and not personalised financial advice; outcomes vary and capital is at risk.

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Comparison Snapshot