Analyzing UMB Financial (NASDAQ:UMBF) & S&T Bancorp (NASDAQ:STBA)

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

Analyst Recommendations

This is a summary of current ratings and price targets for S&T Bancorp and UMB Financial, as provided by MarketBeat.

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S&T Bancorp currently has a consensus price target of $51.60, indicating a potential upside of 4.03%. UMB Financial has a consensus price target of $167.93, indicating a potential upside of 24.40%. Given UMB Financial’s stronger consensus rating and higher possible upside, analysts clearly believe UMB Financial is more favorable than S&T Bancorp.

Dividends

S&T Bancorp pays an annual dividend of $1.48 per share and has a dividend yield of 3.0%. UMB Financial pays an annual dividend of $2.00 per share and has a dividend yield of 1.5%. S&T Bancorp pays out 39.4% of its earnings in the form of a dividend. UMB Financial pays out 16.7% 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. S&T Bancorp has increased its dividend for 13 consecutive years and UMB Financial has increased its dividend for 32 consecutive years.

Profitability

This table compares S&T Bancorp and UMB Financial’s net margins, return on equity and return on assets.

Earnings & Valuation

This table compares S&T Bancorp and UMB Financial”s gross revenue, earnings per share (EPS) and valuation.

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

Institutional & Insider Ownership

65.2% of S&T Bancorp shares are owned by institutional investors. Comparatively, 87.8% of UMB Financial shares are owned by institutional investors. 1.2% of S&T Bancorp shares are owned by company insiders. Comparatively, 5.3% of UMB Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

S&T Bancorp has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, UMB Financial has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Summary

UMB Financial beats S&T Bancorp on 11 of the 17 factors compared between the two stocks.

About S&T Bancorp

(Get Free Report)

S&T Bancorp, Inc. is a bank holding company, which engages in the provision of consumer, commercial, and small business banking services. It operates through the following segments: Commercial Real Estate, Commercial and Industrial, Commercial Construction, Business Banking, Consumer Real Estate, and Other Consumer. The Commercial Real Estate segment includes both owner-occupied properties and investment properties for various purposes such as hotels, retail, multifamily and health care. The Commercial and Industrial segment focuses on the companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing. The Commercial Construction segment refers to the finance construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes. The Business Banking segment is made to small businesses that are standard, non-complex products evaluated through a streamlined credit approval process that has been designed to maximize efficiency while maintaining high credit quality standards. The Consumer Real Estate segment offers first and second liens such as 1-4 family residential mortgages, home equity loans and home equity lines of credit. The Other Consumer segment consists of individuals that may be secured by assets other than 1-4 family residences, as well as unsecured loans. The company was founded on March 17, 1983 and is headquartered in Indiana, PA.

About UMB Financial

(Get Free Report)

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.

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