UMB Financial (UMBF) versus Stellarone (STEL) Head-To-Head Comparison

UMB Financial (NASDAQ: UMBF) and Stellarone (NASDAQ:STEL) are both financials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.

Dividends

UMB Financial pays an annual dividend of $1.10 per share and has a dividend yield of 1.4%. Stellarone does not pay a dividend. UMB Financial pays out 30.6% of its earnings in the form of a dividend. UMB Financial has increased its dividend for 13 consecutive years.

Earnings and Valuation

This table compares UMB Financial and Stellarone’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UMB Financial $999.11 million 3.80 $158.80 million $3.59 21.19
Stellarone N/A N/A N/A N/A N/A

UMB Financial has higher revenue and earnings than Stellarone.

Analyst Ratings

This is a summary of current ratings and recommmendations for UMB Financial and Stellarone, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UMB Financial 0 3 1 0 2.25
Stellarone 0 0 0 0 N/A

UMB Financial currently has a consensus price target of $75.50, indicating a potential downside of 0.76%. Given UMB Financial’s higher possible upside, equities analysts clearly believe UMB Financial is more favorable than Stellarone.

Insider and Institutional Ownership

83.0% of UMB Financial shares are held by institutional investors. 10.1% of UMB Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares UMB Financial and Stellarone’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UMB Financial 17.05% 9.03% 0.90%
Stellarone N/A N/A N/A

Summary

UMB Financial beats Stellarone on 10 of the 11 factors compared between the two stocks.

About UMB Financial

UMB Financial Corporation is a diversified financial holding company. The Company supplies banking services, institutional investment management, asset servicing and payment solutions to its customers in the United States and around the globe. The Company’s segments include Bank, which provides a range of banking services to commercial, retail, government and correspondent bank customers through the Company’s branches, call center, Internet banking and automated teller machine network; Institutional Investment Management, which provides equity and fixed income investment strategies in the intermediary and institutional markets, and Asset Servicing, which provides services to the asset management industry, supporting a range of investment products, including mutual funds, alternative investments and managed accounts. The Company’s subsidiary includes UMB Fund Services, Inc. (UMBFS).

About Stellarone

StellarOne Corporation is a bank holding company of StellarOne Bank (the Bank). The Bank is an independent commercial bank holding company. It offers services provided by full-service banks, including individual and commercial demand and time deposit accounts, commercial and consumer loans, residential mortgages, credit card services and deposit services. The Bank, through its commercial banking segment, offers Internet banking access for banking services, mobile banking and online bill payment for both consumers and commercial customers. Lending is focused on individuals and small to middle-market businesses in the local markets of the Bank. The Bank, through its wealth management segment, provides a variety of wealth management and personal trust services. The mortgage banking segment engages primarily in the origination and acquisition of residential mortgages for sale into the secondary market. In January 2014, Union First Market Bankshares Corp acquired StellarOne Corporation.

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