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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2172
Positioning
Market Dominance
Finance, Insurance, And Real Estate
Banking
$489M
James A. Hughes
Unity Bancorp, Inc. operates as the holding company for Unity Bank that provides commercial and retail banking products and services to individuals, small and medium sized businesses, and professional communities. The company offers personal and business checking accounts, time deposits, money market accounts, and regular savings accounts. It also provides small business administration loans; commercial loans; and residential mortgage and consumer loans.
Headcount
230
HQ Base
Clinton, New Jersey
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = UNTY ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$SII SPROTT INC. | 75 | 91 | 87 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PUK PRUDENTIAL PLC | 73 | 88 | 97 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NMR NOMURA HOLDINGS INC | 72 | 81 | 92 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PSLV Sprott Physical Silver Trust | 69 | 82 | 80 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UFCS UNITED FIRE GROUP INC | 68 | 81 | 93 | 76 | 5.0x | 3.5x | 13.2% | 4.1% | 99.9% | 14.7% | 11.1% | 9.2% | 2.1% | 16.0x | $775M | VS | |
$SLF SUN LIFE FINANCIAL INC | 68 | 83 | 95 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CBOE Cboe Global Markets, Inc. | 68 | 75 | 63 | 77 | 21.3x | 15.7x | 24.0% | 13.7% | 41.7% | 32.4% | 26.4% | 8.2% | 1.1% | 30.0x | $25.7B | VS | |
$VTMX Vesta Real Estate Corporation, S.A.B. de C.V. | 67 | 69 | 77 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PHYS Sprott Physical Gold Trust | 67 | 64 | 82 | 91 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GLDM World Gold Trust | 66 | 54 | 85 | 92 | 11.3x | 11.3x | - | 20.9% | 100.0% | 97.1% | 554.8% | -19.0% | 0.0% | - | $32.0B | VS | |
$UNTY UNITY BANCORP INC /NJ/ | 49 | 30 | 52 | 58 | 10.1x | 7.7x | 16.0% | 1.9% | 0.0% | 41.9% | 31.8% | 16.8% | 1.1% | 761.0x | $489M | ||
| SECTOR BENCH | - | - | - | - | - | 11.9x | 7.8x | 9.0% | 1.3% | 77.7% | 18.1% | 21.9% | 10.7% | 2.0% | 0.5x | - | REF |
UNITY BANCORP INC /NJ/ (UNTY) receives a "Reduce" rating with a composite score of 48.9/100. It ranks #2172 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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In-line with peers — no strong momentum signal
Fair valuation relative to peers
Weak fundamentals — higher risk of value trap
Average volatility — neutral timing signal
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Finance, Insurance, And Real Estate sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for UNTY.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 30 | 34 | -4NEUTRAL |
| MOMENTUM | 58 | 63 | -5NEUTRAL |
| VALUATION | 52 | 71 | -19DRAG |
| INVESTMENT | 42 | 79 | -37DRAG |
| STABILITY | 52 | 53 | -1NEUTRAL |
| SHORT INT | 53 | 64 | -11DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 6.4% vs WACC 6.8% (spread -0.5%)
GM 0% vs sector 78%, OM 42% vs sector 18%
Capital turnover 0.20x
Rev growth 17%, 10yr history
Interest coverage 17.5x, Net debt/EBITDA 11.7x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate UNITY BANCORP INC /NJ/ (UNTY) as a Reduce with a composite score of 48.9/100 at a current price of $52.12. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
UNITY BANCORP INC /NJ/ holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 48.9/100 places it at rank #2172 in our full universe.
Narrow
Medium
Poor
Fair Value
Returns on equity of 16.0% exceed cost of capital.
Stable competitive position in a defensive sector.
Leverage of 761% D/E amplifies downside risk.
Below-average quality raises earnings sustainability concerns.
Vulnerability to macroeconomic shocks and interest rate volatility.
UNITY BANCORP INC /NJ/ represents a reduce based on multi-factor quantitative performance.
UNITY BANCORP INC /NJ/ receives a Reduce rating from our analysis, with a composite score of 48.9/100 and 2 out of 5 stars, ranking #2172 out of 7,333 stocks. UNTY's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
UNTY's quality score of 30/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 16.0% (sector avg: 9.0%), gross margins of 0.0% (sector avg: 77.7%), net margins of 31.8% (sector avg: 21.9%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
UNTY's value score of 52/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 10.14x, an EV/EBITDA of 7.69x, a P/B ratio of 1.62x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
With an investment score of 42/100, UNTY exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of 16.8% vs. a sector average of 10.7% and a return on assets of 1.9% (sector: 1.3%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
UNTY demonstrates moderate momentum with a score of 58/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 16.8% year-over-year, while a beta of 0.73 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
With a stability score of 52/100, UNTY exhibits average financial resilience. Key stability metrics include a beta of 0.73 and a debt-to-equity ratio of 761.00x (sector avg: 0.5x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
The short interest score of 53/100 for UNTY suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 761.00x), small-cap liquidity risk. With a $489M market cap (small-cap), UNITY BANCORP INC /NJ/ may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
UNTY offers a modest dividend yield of 1.1%. This compares to a sector average dividend yield of 2.0%. While the income contribution is relatively small, even a small dividend signals management's commitment to shareholder returns and can serve as a signal of financial discipline.
UNITY BANCORP INC /NJ/ is a small-cap company in the Finance, Insurance, And Real Estate sector, ranked #0 of 50 in its sector (100th percentile) and #2172 of 7,333 overall (70th percentile). Key comparisons include ROE of 16.0% exceeding the 9.0% sector median and operating margins of 41.9% above the 18.1% sector average. This top-quartile standing reflects exceptional competitive strength relative to Finance, Insurance, And Real Estate peers.
While UNTY currently exhibits a REDUCE profile, superior opportunities exist within the FINANCE, INSURANCE, AND REAL ESTATE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Quality (30) would have the largest impact on the composite score.
EV/EBITDA IN LINE WITH SECTOR BENCHMARKS
ROE 78% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 100% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...
Firm highlights Unity’s loan growth, profitability, and strategic discipline as key drivers of long-term valueCLINTON, N.J., Jan. 30, 2026 (GLOBE NEWSWIRE) -- Piper Sandler, a leading investment bank and institutional securities firm, has named Unity Bancorp, Inc. (NASDAQ: UNTY) one of its Top Bank Investment Ideas for 2026, recognizing the company’s strong performance and sustained growth potential. The recognition was featured in Piper Sandler’s annual Financial Services Top Ideas report, whic
As the U.S. stock market continues to reach new highs, with the S&P 500 and Dow Jones Industrial Average recently closing at record levels, investors are navigating an environment marked by both opportunity and uncertainty. In this dynamic landscape, identifying promising stocks often involves looking beyond well-known names to uncover potential in lesser-known companies that may benefit from current economic trends and market conditions.
Unity Bancorp (UNTY) Q4 GAAP EPS hits $1.52; full-year net income rises to $58.0M.
Unity Bancorp has declared a cash dividend of $0.15 per common share, payable on September 19, 2025, representing a 7% increase from the previous quarter. The company's CEO highlighted confidence in their earnings strength and long-term growth trajectory.