Analyzing UMB Financial (NASDAQ:UMBF) & 1st Colonial Bancorp (OTCMKTS:FCOB)

1st Colonial Bancorp (OTCMKTS:FCOB) and UMB Financial (NASDAQ:UMBF) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Profitability

This table compares 1st Colonial Bancorp and UMB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
1st Colonial Bancorp	16.80%	10.94%	0.92%
UMB Financial	14.55%	14.23%	1.00%

Analyst Ratings

This is a summary of current ratings and price targets for 1st Colonial Bancorp and UMB Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
1st Colonial Bancorp	0	0	0	0	N/A
UMB Financial	0	1	4	1	3.00

UMB Financial has a consensus target price of $102.33, indicating a potential downside of 1.70%. Given UMB Financial’s higher probable upside, analysts clearly believe UMB Financial is more favorable than 1st Colonial Bancorp.

Valuation & Earnings

This table compares 1st Colonial Bancorp and UMB Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
1st Colonial Bancorp	$42.11 million	1.70	$7.43 million	$1.55	9.68
UMB Financial	$2.38 billion	2.13	$350.02 million	$7.53	13.82

UMB Financial has higher revenue and earnings than 1st Colonial Bancorp. 1st Colonial Bancorp is trading at a lower price-to-earnings ratio than UMB Financial, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

1st Colonial Bancorp has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, UMB Financial has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.

Insider and Institutional Ownership

13.4% of 1st Colonial Bancorp shares are owned by institutional investors. Comparatively, 87.8% of UMB Financial shares are owned by institutional investors. 8.9% of UMB Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

UMB Financial beats 1st Colonial Bancorp on 13 of the 14 factors compared between the two stocks.

About 1st Colonial Bancorp

1st Colonial Bancorp, Inc. operates as the bank holding company for 1st Colonial Community Bank that provides a range of business and consumer financial services in New Jersey. The company offers various deposit products, including savings accounts, money market accounts, certificates of deposit, club accounts, and business and personal checking accounts. It also provides home equity loans, home equity lines of credit, personal and vehicle loans, residential and commercial mortgages, construction loans, business lines of credit, equipment and vehicle financing, real estate loans, working capital line of credit, and business acquisition loans, as well as small business administration loans. In addition, the company offers cash management services comprising remote deposit capture, ACH/wire transfer, night deposit drop, and merchant services; safe deposit boxes; and coin counting, online and mobile banking, debit card, and ATM services. The company was founded in 2000 and is headquartered in Mount Laurel, New Jersey.

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.