UMB Financial (NASDAQ:UMBF) & Eagle Bancorp Montana (NASDAQ:EBMT) Critical Contrast

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

Risk & Volatility

UMB Financial has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Eagle Bancorp Montana has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UMB Financial	16.90%	12.14%	1.19%
Eagle Bancorp Montana	11.67%	8.17%	0.70%

Valuation & Earnings

This table compares UMB Financial and Eagle Bancorp Montana”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UMB Financial	$4.14 billion	2.20	$702.40 million	$9.13	13.09
Eagle Bancorp Montana	$127.08 million	1.38	$14.84 million	$1.88	11.74

UMB Financial has higher revenue and earnings than Eagle Bancorp Montana. Eagle Bancorp Montana 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

UMB Financial pays an annual dividend of $1.72 per share and has a dividend yield of 1.4%. Eagle Bancorp Montana pays an annual dividend of $0.58 per share and has a dividend yield of 2.6%. UMB Financial pays out 18.8% of its earnings in the form of a dividend. Eagle Bancorp Montana pays out 30.9% 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 Eagle Bancorp Montana has increased its dividend for 14 consecutive years.

Insider and Institutional Ownership

87.8% of UMB Financial shares are held by institutional investors. Comparatively, 35.7% of Eagle Bancorp Montana shares are held by institutional investors. 5.5% of UMB Financial shares are held by company insiders. Comparatively, 6.1% of Eagle Bancorp Montana 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.

Analyst Recommendations

This is a breakdown of current recommendations for UMB Financial and Eagle Bancorp Montana, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UMB Financial	0	2	10	2	3.00
Eagle Bancorp Montana	0	1	1	1	3.00

UMB Financial currently has a consensus price target of $141.18, suggesting a potential upside of 18.13%. Eagle Bancorp Montana has a consensus price target of $23.00, suggesting a potential upside of 4.21%. Given UMB Financial’s higher probable upside, analysts plainly believe UMB Financial is more favorable than Eagle Bancorp Montana.

Summary

UMB Financial beats Eagle Bancorp Montana on 15 of the 17 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 Eagle Bancorp Montana

Eagle Bancorp Montana, Inc. operates as the bank holding company for Opportunity Bank of Montana that provides various retail banking products and services to small businesses and individuals in Montana. It accepts various deposit products, such as checking, savings, money market, and individual retirement accounts, as well as certificates of deposit accounts. The company also provides 1-4 family residential mortgage loans, such as residential mortgages and construction of residential properties; commercial real estate loans, including multi-family dwellings, nonresidential property, commercial construction and development, and farmland loans; and second mortgage/home equity loans. In addition, it offers consumer loans, such as loans secured by collateral other than real estate, such as automobiles, recreational vehicles, and boats; personal loans and lines of credit; commercial business loans consisting of business loans and lines of credit on a secured and unsecured basis; construction loans; agricultural loans; and mortgage loan services. The company operates full-service branches and automated teller machines. Eagle Bancorp Montana, Inc. was founded in 1922 and is headquartered in Helena, Montana.