UMB Financial (NASDAQ:UMBF) vs. Farmers National Banc (NASDAQ:FMNB) Head-To-Head Comparison

UMB Financial (NASDAQ:UMBF) and Farmers National Banc (NASDAQ:FMNB) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent recommendations for UMB Financial and Farmers National Banc, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UMB Financial	0	2	10	1	2.92
Farmers National Banc	0	3	1	0	2.25

UMB Financial currently has a consensus target price of $137.20, suggesting a potential upside of 15.31%. Farmers National Banc has a consensus target price of $14.50, suggesting a potential upside of 0.35%. Given UMB Financial’s stronger consensus rating and higher probable upside, equities research analysts clearly believe UMB Financial is more favorable than Farmers National Banc.

Institutional & Insider Ownership

87.8% of UMB Financial shares are held by institutional investors. Comparatively, 38.7% of Farmers National Banc shares are held by institutional investors. 5.5% of UMB Financial shares are held by company insiders. Comparatively, 4.0% of Farmers National Banc shares are held by company 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.

Volatility & Risk

UMB Financial has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Farmers National Banc has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UMB Financial	16.01%	12.15%	1.11%
Farmers National Banc	19.57%	13.49%	1.13%

Earnings & Valuation

This table compares UMB Financial and Farmers National Banc”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UMB Financial	$2.80 billion	3.23	$441.24 million	$8.83	13.47
Farmers National Banc	$269.45 million	2.02	$45.95 million	$1.44	10.03

UMB Financial has higher revenue and earnings than Farmers National Banc. Farmers National Banc 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%. Farmers National Banc pays an annual dividend of $0.68 per share and has a dividend yield of 4.7%. UMB Financial pays out 19.5% of its earnings in the form of a dividend. Farmers National Banc pays out 47.2% 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.

Summary

UMB Financial beats Farmers National Banc on 13 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 Farmers National Banc

Farmers National Banc Corp. operates as a bank holding company for The Farmers National Bank of Canfield engages in the banking, trust, retirement consulting, insurance, and financial management businesses. It offers commercial and retail banking services, including checking, savings, and time deposit accounts; commercial, mortgage and installment, and home equity loans; home equity lines of credit, night depository, safe deposit box, money order, bank check, automated teller machine, Internet banking, travel card, E bond transaction, brokerage, and other services. The company also provides personal and corporate trust services in the areas of estate settlement, trust administration, employee benefit plans, and retirement services; property and casualty insurance products and services; and various insurance products through licensed representatives, as well as invests in municipal securities. The company was founded in 1887 and is headquartered in Canfield, Ohio.