Comparing UMB Financial (UMBF) and Opus Bank (OPB)
Opus Bank (NASDAQ: OPB) 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 dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.
Institutional and Insider Ownership
98.5% of Opus Bank shares are held by institutional investors. Comparatively, 83.0% of UMB Financial shares are held by institutional investors. 10.1% of UMB Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a summary of recent ratings and target prices for Opus Bank and UMB Financial, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Opus Bank currently has a consensus price target of $28.50, indicating a potential upside of 3.07%. UMB Financial has a consensus price target of $75.50, indicating a potential upside of 1.27%. Given Opus Bank’s stronger consensus rating and higher possible upside, analysts plainly believe Opus Bank is more favorable than UMB Financial.
Valuation & Earnings
This table compares Opus Bank and UMB Financial’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Opus Bank||$336.69 million||2.82||$11.45 million||$0.68||40.66|
|UMB Financial||$999.11 million||3.72||$158.80 million||$3.59||20.77|
UMB Financial has higher revenue and earnings than Opus Bank. UMB Financial is trading at a lower price-to-earnings ratio than Opus Bank, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Opus Bank has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, UMB Financial has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.
This table compares Opus Bank and UMB Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
UMB Financial pays an annual dividend of $1.10 per share and has a dividend yield of 1.5%. Opus Bank does not pay a dividend. UMB Financial pays out 30.6% of its earnings in the form of a dividend. Opus Bank has raised its dividend for 12 consecutive years.
UMB Financial beats Opus Bank on 9 of the 17 factors compared between the two stocks.
Opus Bank Company Profile
Opus Bank is a commercial bank. The Company provides banking products, services and solutions to its clients through its Retail Bank, Commercial Bank, Merchant Bank, and Correspondent Bank. The Company’s Commercial Bank consists Commercial Banking, Business Banking, Healthcare Banking, Technology Banking, Fiduciary Banking, Institutional Syndications and Commercial Real Estate Banking (CREB), which includes Income Property Banking, its Structured Finance Group and Capital Markets Group. Through its Merchant Bank, the Company offers transaction support, and debt and equity capital to entrepreneurs, small and mid-sized business and middle-market companies. Through its Retail Bank, the Company provides banking solutions for small and mid-sized companies, entrepreneurs, real estate investors, professional and high net worth individuals. Through its Correspondent Bank, the Company offers loan and depository services to other financial institutions.
UMB Financial Company Profile
UMB Financial Corporation is a diversified financial holding company. The Company supplies banking services, institutional investment management, asset servicing and payment solutions to its customers in the United States and around the globe. The Company’s segments include Bank, which provides a range of banking services to commercial, retail, government and correspondent bank customers through the Company’s branches, call center, Internet banking and automated teller machine network; Institutional Investment Management, which provides equity and fixed income investment strategies in the intermediary and institutional markets, and Asset Servicing, which provides services to the asset management industry, supporting a range of investment products, including mutual funds, alternative investments and managed accounts. The Company’s subsidiary includes UMB Fund Services, Inc. (UMBFS).
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