Comparing UniCredit (OTCMKTS:UNCRY) & UMB Financial (NASDAQ:UMBF)

UMB Financial (NASDAQ:UMBF) and UniCredit (OTCMKTS:UNCRY) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for UMB Financial and UniCredit, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UMB Financial	0	3	5	0	2.63
UniCredit	0	0	0	1	4.00

UMB Financial currently has a consensus target price of $122.13, suggesting a potential upside of 27.67%. Given UMB Financial’s higher possible upside, analysts clearly believe UMB Financial is more favorable than UniCredit.

Dividends

UMB Financial pays an annual dividend of $1.60 per share and has a dividend yield of 1.7%. UniCredit pays an annual dividend of $0.53 per share and has a dividend yield of 1.8%. UMB Financial pays out 17.8% of its earnings in the form of a dividend. UMB Financial has increased its dividend for 32 consecutive years.

Valuation and Earnings

This table compares UMB Financial and UniCredit”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UMB Financial	$1.47 billion	4.95	$441.24 million	$8.99	10.64
UniCredit	$26.50 billion	3.42	$9.32 billion	N/A	N/A

UniCredit has higher revenue and earnings than UMB Financial.

Volatility and Risk

UMB Financial has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, UniCredit has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.

Insider & Institutional Ownership

87.8% of UMB Financial shares are held by institutional investors. Comparatively, 0.3% of UniCredit shares are held by institutional investors. 5.5% of UMB Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UMB Financial	15.76%	13.73%	0.98%
UniCredit	N/A	N/A	N/A

Summary

UMB Financial beats UniCredit on 9 of the 16 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 UniCredit

UniCredit S.p.A. provides commercial banking services in Italy, Germany, Central Europe, and Eastern Europe. It offers retail, private, and wealth management solutions; and institutional investor solutions. The company also provides corporate finance advisory, rating advisory, financial sponsor, patient capital, capital structure advisory, and finance solutions, as well as securities services. In addition, it offers transactional and risk management, and strategic advisory and funding services; group trade and correspondent banking services; and payments and cash management solutions. The company serves SME, corporate, multinational corporate, financial institution, and public sector clients, as well as retail, private banking, wealth management, and family office clients. The company was founded in 1870 and is headquartered in Milan, Italy.