Head-To-Head Survey: UMB Financial (NASDAQ:UMBF) vs. Farmers National Banc (NASDAQ:FMNB)

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Farmers National Banc and UMB Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Farmers National Banc	0	3	1	0	2.25
UMB Financial	0	2	10	1	2.92

Farmers National Banc presently has a consensus target price of $14.50, suggesting a potential upside of 3.42%. UMB Financial has a consensus target price of $137.20, suggesting a potential upside of 15.34%. Given UMB Financial’s stronger consensus rating and higher probable upside, analysts plainly believe UMB Financial is more favorable than Farmers National Banc.

Earnings & Valuation

This table compares Farmers National Banc and UMB Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmers National Banc	$269.45 million	1.96	$45.95 million	$1.44	9.74
UMB Financial	$2.80 billion	3.23	$441.24 million	$8.83	13.47

UMB Financial has higher revenue and earnings than Farmers National Banc. Farmers National Banc 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

Farmers National Banc pays an annual dividend of $0.68 per share and has a dividend yield of 4.9%. UMB Financial pays an annual dividend of $1.72 per share and has a dividend yield of 1.4%. Farmers National Banc pays out 47.2% of its earnings in the form of a dividend. UMB Financial pays out 19.5% 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 raised its dividend for 32 consecutive years.

Risk and Volatility

Farmers National Banc has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, UMB Financial has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Farmers National Banc	19.57%	13.49%	1.13%
UMB Financial	16.01%	12.15%	1.11%

Institutional & Insider Ownership

38.7% of Farmers National Banc shares are held by institutional investors. Comparatively, 87.8% of UMB Financial shares are held by institutional investors. 4.0% of Farmers National Banc shares are held by company insiders. Comparatively, 5.5% of UMB Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

UMB Financial beats Farmers National Banc on 13 of the 18 factors compared between the two stocks.

About Farmers National Banc

Farmers National Banc Corp. operates as a bank holding company for The Farmers National Bank of Canfield engages in the banking, trust, retirement consulting, insurance, and financial management businesses. It offers commercial and retail banking services, including checking, savings, and time deposit accounts; commercial, mortgage and installment, and home equity loans; home equity lines of credit, night depository, safe deposit box, money order, bank check, automated teller machine, Internet banking, travel card, E bond transaction, brokerage, and other services. The company also provides personal and corporate trust services in the areas of estate settlement, trust administration, employee benefit plans, and retirement services; property and casualty insurance products and services; and various insurance products through licensed representatives, as well as invests in municipal securities. The company was founded in 1887 and is headquartered in Canfield, 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.