Premier united (NASDAQ: FUNC – Get a rating) and UMB Financial (NASDAQ: UMBF – Get a rating) are both finance companies, but which company is superior? We’ll compare the two companies based on earnings strength, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.
Risk and Volatility
First United has a beta of 0.75, suggesting its stock price is 25% less volatile than the S&P 500. Comparatively, UMB Financial has a beta of 0.93, suggesting its stock price is 7% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for First United and UMB Financial, as reported by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
First United currently has a consensus price target of $28.00, suggesting a potential upside of 38.75%. UMB Financial has a consensus price target of $111.67, suggesting a potential upside of 22.97%. Given First United’s stronger consensus rating and higher likely upside, stock analysts clearly believe that First United is more favorable than UMB Financial.
First United pays an annual dividend of $0.60 per share and has a dividend yield of 3.0%. UMB Financial pays an annual dividend of $1.48 per share and has a dividend yield of 1.6%. First United pays 18.1% of its profits as a dividend. UMB Financial distributes 19.7% 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. First United increased its dividend for 1 consecutive year and UMB Financial increased its dividend for 18 consecutive years. First United is clearly the better dividend-paying stock, given its higher yield and lower payout ratio.
This table compares the net margins, return on equity and return on assets of First United and UMB Financial.
|Net margins||Return on equity||return on assets|
Institutional and Insider Ownership
29.1% of First United shares are held by institutional investors. Comparatively, 87.3% of UMB Financial’s shares are held by institutional investors. 4.2% of First United shares are held by insiders. Comparatively, 9.8% of UMB Financial’s shares are held by insiders. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock will outperform the market over the long term.
Benefits and evaluation
This table compares the gross revenue, earnings per share and valuation of First United and UMB Financial.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Premier united||$78.18 million||1.71||$19.77 million||$3.32||6.08|
|UMB Financial||$1.34 billion||3.28||$353.02 million||$7.51||12.09|
UMB Financial has higher revenue and profit than First United. First United trades at a lower price-to-earnings ratio than UMB Financial, indicating that it is currently the more affordable of the two stocks.
UMB Financial beats First United on 10 out of 17 factors compared between the two stocks.
About First United (Get a rating)
First United Corporation operates as a bank holding company for First United Bank & Trust which provides various retail and commercial banking services to businesses and individuals. The Company offers a variety of deposit products, including checking accounts, savings and money market accounts, ordinary and individual retirement account (IRA) certificates of deposit, Christmas savings accounts, college savings and health savings accounts; deposit account certificate registry service program and insured fund scanning program for municipalities, businesses and consumers; and packages for business customers, which include cash management, cash sweeping, and various verification opportunities. It also makes loans, such as commercial loans secured by real estate, commercial equipment, vehicles or other assets of the borrower; commercial real estate loans for residential and commercial development, agricultural properties and service industry buildings; residential mortgages; home equity lines of credit; loans for the construction of residential real estate; and indirect and direct auto loans, student loans, term loans and other secured and unsecured lines of credit and term loans. In addition, the company offers a variety of trust services, including personal trusts, employment agency accounts, charitable trusts, retirement accounts comprised of IRA rollovers, 401(k) accounts and defined benefit plans, estate administration and estate planning services; insurance products; brokerage services; as well as safes and night deposits. It operates 26 banking offices, a customer service center and 34 ATMs in Allegany, Frederick, Garrett and Washington counties in Maryland; and in Mineral, Berkeley, Monongalia and Harrison counties in West Virginia. First United Corporation was founded in 1900 and is headquartered in Oakland, Maryland.
About UMB Financial (Get a rating)
UMB Financial Corporation operates as a bank holding company for UMB bank which provides various banking and other financial services. The Commercial Banking segment provides commercial loans and credit cards; commercial real estate financing; letter of credit; loan syndication and advisory service; various business solutions, including asset-based lending, accounts receivable financing, mezzanine debt and minority equity investments; and cash management service, such as deposit service, account reconciliation, cash management tool, accounts payable and receivable solution, electronic funds transfer and automated payment, controlled disbursement, vault service and input service remote filing. The Institutional Banking segment offers asset management and healthcare services provided to institutional clients; and fund administration and accounting, investor service and transfer agency, marketing and distribution, custody, alternative investment service, fixed income sales, trading and underwriting, and corporate trust and escrow service , as well as institutional daycare. This segment also provides healthcare payment solution including custodial service for health savings accounts and private brands, multi-purpose debit cards to insurance companies, third-party administrators, software companies, employers and financial institutions. The Retail Banking segment offers deposit accounts, retail credit cards, private banking, installment loans, home equity lines of credit, residential mortgages and small business loans, as well as internet banking, an ATM network, private banking, brokerage and insurance, and advisory and trust services. It operates through a network of branches and offices in the states of Missouri, Kansas, Colorado, Illinois, Oklahoma, Texas, Arizona, Nebraska, Iowa, Pennsylvania, South Dakota, Indiana, Utah, Minnesota, California and Wisconsin. The company was founded in 1913 and is based in Kansas City, Missouri.
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