Head to Head Survey: UMB Financial (NASDAQ:UMBF) vs. Raiffeisen Bank International (OTCMKTS:RAIFY)

Raiffeisen Bank International (OTCMKTS:RAIFY) and UMB Financial (NASDAQ:UMBF) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Institutional and Insider Ownership

87.8% of UMB Financial shares are held by institutional investors. 5.3% of UMB Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Raiffeisen Bank International	19.31%	10.94%	1.16%
UMB Financial	23.45%	14.07%	1.46%

Volatility and Risk

Raiffeisen Bank International has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, UMB Financial has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Dividends

Raiffeisen Bank International pays an annual dividend of $0.27 per share and has a dividend yield of 1.7%. UMB Financial pays an annual dividend of $2.00 per share and has a dividend yield of 1.5%. Raiffeisen Bank International pays out 12.9% of its earnings in the form of a dividend. UMB Financial pays out 15.1% 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 raised its dividend for 32 consecutive years. Raiffeisen Bank International is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Raiffeisen Bank International and UMB Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Raiffeisen Bank International	0	0	0	1	4.00
UMB Financial	0	4	11	1	2.81

UMB Financial has a consensus target price of $160.93, suggesting a potential upside of 19.68%. Given UMB Financial’s higher probable upside, analysts clearly believe UMB Financial is more favorable than Raiffeisen Bank International.

Earnings & Valuation

This table compares Raiffeisen Bank International and UMB Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Raiffeisen Bank International	$14.76 billion	1.39	$1.55 billion	$2.10	7.43
UMB Financial	$2.79 billion	3.66	$702.40 million	$13.21	10.18

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

Summary

UMB Financial beats Raiffeisen Bank International on 11 of the 17 factors compared between the two stocks.

About Raiffeisen Bank International

Raiffeisen Bank International AG, together with its subsidiaries, offers banking services to corporate, private customers, and institutional customers. The company offers cash management, cross border accounts, electronic banking, payments solutions, sustainable and subsidized financing, leveraged and acquisition financing, project and structured financing, real estate financing, leasing, factoring, trade and export financing, investment banking, investing, hedging, and investor services to its institutional clients and corporate customers in agri food and beverage, automotive, construction and building materials, food and beverage, healthcare and pharmaceuticals, oil and gas, packaging, real estate, retail, technology, telecom, and utilities industries. It also provides retail and private banking services, including deposits, loans, wealth management, and advisory services to retail customers and small and medium-sized enterprises. In addition, the company offers clearing, reporting, settlement, guarantees, letters of credit, fund administration, acceptances, brokerage, asset management, and custody services; and investment banking services, including asset based finance, fund finance and alternatives investments, loan syndication, mergers and acquisitions advisory, and debt and equity capital markets services. It operates through a network of business outlets in Central, Southeastern, and Eastern Europe, as well as Austria, Czech Republic, Hungary, Poland, and Slovakia. Raiffeisen Bank International AG was founded in 1886 and is based in Vienna, Austria.

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.