UMB Financial (NASDAQ:UMBF) & United Bancorp (NASDAQ:UBCP) Head-To-Head Contrast

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

Volatility and Risk

United Bancorp has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, UMB Financial has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Earnings & Valuation

This table compares United Bancorp 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
United Bancorp	$43.98 million	1.79	$7.40 million	$1.30	10.51
UMB Financial	$2.80 billion	3.21	$441.24 million	$8.83	13.41

UMB Financial has higher revenue and earnings than United Bancorp. United 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.

Dividends

United Bancorp pays an annual dividend of $0.75 per share and has a dividend yield of 5.5%. UMB Financial pays an annual dividend of $1.60 per share and has a dividend yield of 1.4%. United Bancorp pays out 57.7% of its earnings in the form of a dividend. UMB Financial pays out 18.1% 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. United Bancorp has raised its dividend for 13 consecutive years and UMB Financial has raised its dividend for 32 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings for United Bancorp and UMB Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Bancorp	0	1	0	0	2.00
UMB Financial	0	3	9	1	2.85

UMB Financial has a consensus price target of $137.20, suggesting a potential upside of 15.85%. Given UMB Financial’s stronger consensus rating and higher probable upside, analysts plainly believe UMB Financial is more favorable than United Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
United Bancorp	16.39%	12.09%	0.90%
UMB Financial	16.01%	12.15%	1.11%

Insider and Institutional Ownership

15.4% of United Bancorp shares are owned by institutional investors. Comparatively, 87.8% of UMB Financial shares are owned by institutional investors. 12.9% of United Bancorp shares are owned by insiders. Comparatively, 5.5% of UMB Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

UMB Financial beats United Bancorp on 15 of the 18 factors compared between the two stocks.

About United Bancorp

United Bancorp, Inc. operates as the bank holding company for Unified Bank that provides commercial and retail banking services in Ohio. The company provides range of banking and financial services, which includes accepting demand, savings, and time deposits. It also offers commercial, real estate and consumer loans. United Bancorp, Inc. was founded in 1902 and is headquartered in Martins Ferry, Ohio.

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.