UMB Financial (NASDAQ:UMBF – Get Free Report) and Enterprise Financial Services (NASDAQ:EFSC – Get Free Report) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.
Insider and Institutional Ownership
87.8% of UMB Financial shares are held by institutional investors. Comparatively, 72.2% of Enterprise Financial Services shares are held by institutional investors. 5.3% of UMB Financial shares are held by insiders. Comparatively, 2.2% of Enterprise Financial Services shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Dividends
UMB Financial pays an annual dividend of $1.72 per share and has a dividend yield of 1.3%. Enterprise Financial Services pays an annual dividend of $1.32 per share and has a dividend yield of 2.2%. UMB Financial pays out 15.3% of its earnings in the form of a dividend. Enterprise Financial Services pays out 24.9% 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 increased its dividend for 32 consecutive years and Enterprise Financial Services has increased its dividend for 11 consecutive years.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| UMB Financial | 0 | 3 | 9 | 1 | 2.85 |
| Enterprise Financial Services | 0 | 1 | 4 | 0 | 2.80 |
UMB Financial presently has a consensus price target of $145.55, indicating a potential upside of 11.05%. Enterprise Financial Services has a consensus price target of $66.00, indicating a potential upside of 11.37%. Given Enterprise Financial Services’ higher possible upside, analysts clearly believe Enterprise Financial Services is more favorable than UMB Financial.
Earnings and Valuation
This table compares UMB Financial and Enterprise Financial Services”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| UMB Financial | $4.14 billion | 2.40 | $702.40 million | $11.27 | 11.63 |
| Enterprise Financial Services | $1.00 billion | 2.18 | $201.37 million | $5.30 | 11.18 |
UMB Financial has higher revenue and earnings than Enterprise Financial Services. Enterprise Financial Services is trading at a lower price-to-earnings ratio than UMB Financial, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares UMB Financial and Enterprise Financial Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| UMB Financial | 20.42% | 13.07% | 1.31% |
| Enterprise Financial Services | 19.81% | 10.35% | 1.19% |
Risk & Volatility
UMB Financial has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Enterprise Financial Services has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.
Summary
UMB Financial beats Enterprise Financial Services on 15 of the 18 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 Enterprise Financial Services
Enterprise Financial Services Corp operates as the holding company for Enterprise Bank & Trust that offers banking and wealth management services to individuals and corporate customers primarily in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico. It provides checking, savings, money market accounts, and certificates of deposit. The company also provides commercial and industrial, commercial real estate, real estate construction and development, residential real estate, small business administration, agricultural, consumer, and other loan products. In addition, it offers treasury management and international trade services; tax credit brokerage services; life insurance premium and sponsor finance; tax credit related lending; other deposit accounts, such as community associations, property management, third party escrow, and trust services; treasury management product and services; customized solutions and products; cash management; fiduciary, investment management, and financial advisory services; and customer hedging products, including international banking, card services, and tax credit businesses. Further, the company provides online, device applications, text, and voice banking; remote deposit capture; internet banking, mobile banking, cash management, positive pay services, fraud detection and prevention, automated payables, check image, and statement and document imaging; and controlled disbursements, repurchase agreements, and sweep investment accounts. Enterprise Financial Services Corp was founded in 1988 and is headquartered in Clayton, Missouri.
Receive News & Ratings for UMB Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for UMB Financial and related companies with MarketBeat.com's FREE daily email newsletter.
