Peoples Bancorp (NASDAQ:PEBO) versus UMB Financial (NASDAQ:UMBF) Financial Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UMB Financial	15.42%	12.27%	1.05%
Peoples Bancorp	16.88%	9.46%	1.15%

Risk & Volatility

UMB Financial has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Peoples Bancorp has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.

Earnings and Valuation

This table compares UMB Financial and Peoples Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UMB Financial	$1.90 billion	4.62	$441.24 million	$8.70	13.31
Peoples Bancorp	$620.14 million	1.70	$117.21 million	$2.92	10.14

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for UMB Financial and Peoples Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UMB Financial	0	3	5	1	2.78
Peoples Bancorp	0	2	2	0	2.50

UMB Financial presently has a consensus target price of $132.1111, indicating a potential upside of 14.13%. Peoples Bancorp has a consensus target price of $35.25, indicating a potential upside of 19.01%. Given Peoples Bancorp’s higher possible upside, analysts plainly believe Peoples Bancorp is more favorable than UMB Financial.

Insider and Institutional Ownership

87.8% of UMB Financial shares are owned by institutional investors. Comparatively, 60.7% of Peoples Bancorp shares are owned by institutional investors. 5.5% of UMB Financial shares are owned by company insiders. Comparatively, 3.4% of Peoples Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

UMB Financial pays an annual dividend of $1.60 per share and has a dividend yield of 1.4%. Peoples Bancorp pays an annual dividend of $1.64 per share and has a dividend yield of 5.5%. UMB Financial pays out 18.4% of its earnings in the form of a dividend. Peoples Bancorp pays out 56.2% 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. UMB Financial has increased its dividend for 32 consecutive years and Peoples Bancorp has increased its dividend for 10 consecutive years.

Summary

UMB Financial beats Peoples Bancorp on 14 of the 18 factors compared between the two stocks.

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.

About Peoples Bancorp

Peoples Bancorp Inc. operates as the holding company for Peoples Bank that provides commercial and consumer banking products and services. The company accepts various deposit products, including demand deposit accounts, savings accounts, money market accounts, certificates of deposit, and governmental deposits; and provides commercial and industrial, commercial real estate, construction, finance, residential real estate, and consumer indirect and direct loans, as well as home equity lines of credit and overdrafts. It also offers debit and automated teller machine (ATM) cards; safe deposit rental facilities; money orders and cashier’s checks; and telephone, mobile, and online banking services. In addition, the company provides various life, health, and property and casualty insurance products; third-party insurance administration; interactive teller machines; insurance premium financing; check deposit and alert notification; commercial and technology equipment leasing; fiduciary and trust; underwriting, origination, and servicing of equipment leases, and equipment financing agreements; and asset management and administration services, as well as employee benefit, retirement, and health care plan administration services. Further, it offers brokerage services through an unaffiliated registered broker-dealers; insurance premium finance lending and leasing; and credit cards to individuals and businesses, as well as provides merchant credit card transaction processing, and person-to-person payment processing services. Peoples Bancorp Inc. was founded in 1902 and is headquartered in Marietta, Ohio.