UBS Group (NYSE:UBS) & UMB Financial (NASDAQ:UMBF) Financial Comparison

UBS Group (NYSE:UBSGet Rating) and UMB Financial (NASDAQ:UMBFGet Rating) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Risk & Volatility

UBS Group has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, UMB Financial has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for UBS Group and UMB Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UBS Group 0 4 9 0 2.69
UMB Financial 0 1 2 0 2.67

UBS Group presently has a consensus target price of $19.21, suggesting a potential upside of 9.09%. UMB Financial has a consensus target price of $115.00, suggesting a potential upside of 23.42%. Given UMB Financial’s higher probable upside, analysts clearly believe UMB Financial is more favorable than UBS Group.

Insider and Institutional Ownership

33.1% of UBS Group shares are held by institutional investors. Comparatively, 86.7% of UMB Financial shares are held by institutional investors. 1.0% of UBS Group shares are held by insiders. Comparatively, 9.8% 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 is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
UBS Group 19.20% 12.48% 0.68%
UMB Financial 26.57% 11.52% 0.94%

Earnings and Valuation

This table compares UBS Group and UMB Financial’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UBS Group $38.65 billion 1.59 $7.46 billion $2.05 8.59
UMB Financial $1.34 billion 3.37 $353.02 million $7.25 12.85

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

Dividends

UBS Group pays an annual dividend of $0.16 per share and has a dividend yield of 0.9%. UMB Financial pays an annual dividend of $1.48 per share and has a dividend yield of 1.6%. UBS Group pays out 7.8% of its earnings in the form of a dividend. UMB Financial pays out 20.4% 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. UBS Group has raised its dividend for 2 consecutive years and UMB Financial has raised its dividend for 18 consecutive years. UMB Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

UMB Financial beats UBS Group on 10 of the 17 factors compared between the two stocks.

About UBS Group (Get Rating)

UBS Group AG provides financial advice and solutions to private, institutional, and corporate clients worldwide. It operates through four divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, and Investment Bank. The Global Wealth Management division offers investment advice and solutions, and lending solutions to ultra high net worth and high net worth clients. This segment also provides estate and wealth planning, investing, philanthropy, corporate and banking, and family advisory services, as well as mortgage, securities-based, and structured lending solutions. The Personal & Corporate Banking division provides personal banking products and services, such as deposits, cards, and online and mobile banking, as well as lending, investments, and retirement services; and corporate and institutional solutions, including equity and debt capital markets, syndicated and structured credit, private placements, leasing, traditional financing, trade and export finance, and global custody solutions, as well as transaction banking solutions for payment and cash management. The Asset Management division offers equities, fixed income, hedge funds, real estate and private markets, indexed and alternative beta strategies, asset allocation and currency investment strategies, customized multi-asset solutions, advisory and fiduciary services, and multi-manager hedge fund solutions and advisory services. The Investment Bank division advises clients on strategic business opportunities and helps them raise capital to fund their activities; enables its clients to buy, sell, and finance securities on capital markets and to manage their risks and liquidity; and offers clients differentiated content on major financial markets and securities. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is based in Zurich, Switzerland.

About UMB Financial (Get Rating)

UMB Financial Corporation operates as the bank holding company for the UMB Bank that provides various banking and other financial services. The Commercial Banking segment provides commercial loans and credit card; commercial real estate financing; letters of credit; loan syndication, and consultative service; various business solutions including asset-based lending, accounts receivable financing, mezzanine debt, and minority equity investment; and treasury management service, such as depository service, account reconciliation, cash management tool, accounts payable and receivable solution, electronic fund transfer and automated payment, controlled disbursement, lockbox service, and remote deposit capture service. The Institutional Banking segment offers asset management and healthcare service provided to institutional client; and fund administration and accounting, investor service and transfer agency, marketing and distribution, custody, alternative investment service, fixed income sale, trading and underwriting, and corporate trust and escrow service, as well as institutional custody service. This segment also provides healthcare payment solution includes custodial service for health saving accounts and private label, multipurpose debit cards to insurance carriers, third-party administrator, software companies, employers, and financial institutions. The Personal Banking segment offers deposit account, retail credit card, private banking, installment loan, home equity line of credit, residential mortgage, and small business loan, as well as internet banking, ATM network, private banking, brokerage and insurance service, and advisory and trust service. 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 headquartered in Kansas City, Missouri.

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