UMB Financial (NASDAQ:UMBF) vs. UniCredit (OTCMKTS:UNCRY) Financial Analysis

UniCredit (OTCMKTS:UNCRY) and UMB Financial (NASDAQ:UMBF) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.

Earnings and Valuation

This table compares UniCredit and UMB Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UniCredit	$26.50 billion	3.32	$9.32 billion	N/A	N/A
UMB Financial	$1.47 billion	4.93	$441.24 million	$8.99	10.61

UniCredit has higher revenue and earnings than UMB Financial.

Dividends

UniCredit pays an annual dividend of $0.53 per share and has a dividend yield of 1.9%. UMB Financial pays an annual dividend of $1.60 per share and has a dividend yield of 1.7%. UMB Financial pays out 17.8% of its earnings in the form of a dividend. UMB Financial has increased its dividend for 32 consecutive years.

Analyst Recommendations

This is a summary of current ratings and target prices for UniCredit and UMB Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UniCredit	0	0	0	1	4.00
UMB Financial	0	3	5	0	2.63

UMB Financial has a consensus target price of $122.13, suggesting a potential upside of 28.09%. Given UMB Financial’s higher probable upside, analysts clearly believe UMB Financial is more favorable than UniCredit.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UniCredit	N/A	N/A	N/A
UMB Financial	15.76%	13.73%	0.98%

Institutional & Insider Ownership

0.3% of UniCredit shares are held by institutional investors. Comparatively, 87.8% of UMB Financial shares are held by institutional investors. 5.5% of UMB Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

UniCredit has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, UMB Financial has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.

Summary

UMB Financial beats UniCredit on 9 of the 16 factors compared between the two stocks.

About UniCredit

UniCredit S.p.A. provides commercial banking services in Italy, Germany, Central Europe, and Eastern Europe. It offers retail, private, and wealth management solutions; and institutional investor solutions. The company also provides corporate finance advisory, rating advisory, financial sponsor, patient capital, capital structure advisory, and finance solutions, as well as securities services. In addition, it offers transactional and risk management, and strategic advisory and funding services; group trade and correspondent banking services; and payments and cash management solutions. The company serves SME, corporate, multinational corporate, financial institution, and public sector clients, as well as retail, private banking, wealth management, and family office clients. The company was founded in 1870 and is headquartered in Milan, Italy.

About UMB Financial

UMB Financial Corporation operates as the bank holding company that provides banking services and asset servicing in the United States and internationally. 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, 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 fund, asset management, and healthcare service to institutional clients; and fund administration and accounting, investor service and transfer agency, mutual fund service, 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, as well as internet banking, ATM network, private banking, brokerage and insurance service, and investment advisory, custody, and trust services. It operates through a network of branches and offices. The company was founded in 1913 and is headquartered in Kansas City, Missouri.