Univest Financial (NASDAQ:UVSP) and Commerce Bancshares (NASDAQ:CBSH) Financial Contrast

Univest Financial (NASDAQ:UVSPGet Rating) and Commerce Bancshares (NASDAQ:CBSHGet Rating) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Earnings and Valuation

This table compares Univest Financial and Commerce Bancshares’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Univest Financial $292.95 million 2.52 $91.80 million $3.12 8.01
Commerce Bancshares $1.41 billion 6.05 $530.77 million $4.31 16.31

Commerce Bancshares has higher revenue and earnings than Univest Financial. Univest Financial is trading at a lower price-to-earnings ratio than Commerce Bancshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Univest Financial and Commerce Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Univest Financial 31.34% 12.27% 1.37%
Commerce Bancshares 37.68% 15.44% 1.53%

Dividends

Univest Financial pays an annual dividend of $0.80 per share and has a dividend yield of 3.2%. Commerce Bancshares pays an annual dividend of $1.06 per share and has a dividend yield of 1.5%. Univest Financial pays out 25.6% of its earnings in the form of a dividend. Commerce Bancshares pays out 24.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Commerce Bancshares has raised its dividend for 1 consecutive years.

Analyst Ratings

This is a summary of current recommendations and price targets for Univest Financial and Commerce Bancshares, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Univest Financial 0 0 1 0 3.00
Commerce Bancshares 2 2 0 0 1.50

Univest Financial currently has a consensus target price of $34.00, indicating a potential upside of 36.00%. Commerce Bancshares has a consensus target price of $69.47, indicating a potential downside of 1.24%. Given Univest Financial’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Univest Financial is more favorable than Commerce Bancshares.

Volatility and Risk

Univest Financial has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Commerce Bancshares has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

Insider and Institutional Ownership

73.1% of Univest Financial shares are held by institutional investors. Comparatively, 64.0% of Commerce Bancshares shares are held by institutional investors. 2.2% of Univest Financial shares are held by insiders. Comparatively, 3.2% of Commerce Bancshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Commerce Bancshares beats Univest Financial on 11 of the 17 factors compared between the two stocks.

About Univest Financial (Get Rating)

Univest Financial Corporation operates as the bank holding company for Univest Bank and Trust Co. that provides banking products and services primarily in Pennsylvania. It operates through three segments: Banking, Wealth Management, and Insurance. The Banking segment provides a range of banking services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking, and equipment lease financing services for individuals, businesses, municipalities, and nonprofit organizations. The Wealth Management segment offers investment advisory, financial planning, and trust and brokerage services for private families and individuals, municipal pension plans, retirement plans, and trusts and guardianships. The Insurance segment provides commercial property and casualty insurance, employee benefits solutions, personal insurance lines, and human resources consulting services. It serves customers primarily in Bucks, Berks, Chester, Cumberland, Dauphin, Delaware, Lancaster, Lehigh, Montgomery, Northampton, Philadelphia, and York counties in Pennsylvania; and Atlantic, Burlington, and Cape May counties in New Jersey through 37 banking offices. The company was formerly known as Univest Corporation of Pennsylvania and changed its name to Univest Financial Corporation in January 2019. Univest Financial Corporation was founded in 1876 and is headquartered in Souderton, Pennsylvania.

About Commerce Bancshares (Get Rating)

Commerce Bancshares, Inc. operates as the bank holding company for Commerce Bank that provides retail, mortgage banking, corporate, investment, trust, and asset management products and services to individuals and businesses in the United States. It operates through three segments: Consumer, Commercial, and Wealth. The Consumer segment offers various banking products and services, including consumer deposits; consumer loans, such as automobile, motorcycle, marine, tractor/trailer, recreational vehicle, fixed rate and revolving home equity, and other consumer loans; patient health care financing; real estate loans; indirect and other consumer financing; personal mortgage banking; consumer installment lending; and consumer debit and credit bank cards. The Commercial segment provides corporate lending, leasing, international, merchant and commercial bank card, and securities safekeeping and bond accounting services; and business products, government deposits, and related commercial cash management services, as well as sells fixed income securities to correspondent banks, corporations, public institutions, municipalities, and individuals. The Wealth segment provides traditional trust and estate planning, advisory and discretionary investment portfolio management, and brokerage services, as well as private banking accounts. The company also offers private equity investment, securities brokerage, insurance agency, specialty lending, and leasing services, as well as online and mobile banking services. It operates through a network of 287 locations in Missouri, Kansas, Illinois, Oklahoma, and Colorado, as well as commercial offices. Commerce Bancshares, Inc. was founded in 1865 and is headquartered in Kansas City, Missouri.

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