Analyzing UMB Financial (NASDAQ:UMBF) & Guaranty Bancshares (NASDAQ:GNTY)

UMB Financial (NASDAQ:UMBFGet Free Report) and Guaranty Bancshares (NASDAQ:GNTYGet Free Report) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Earnings and Valuation

This table compares UMB Financial and Guaranty Bancshares’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UMB Financial $2.38 billion 1.77 $350.02 million $7.53 11.46
Guaranty Bancshares $179.01 million 1.97 $30.04 million $2.44 12.55

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

Institutional & Insider Ownership

87.8% of UMB Financial shares are owned by institutional investors. Comparatively, 39.4% of Guaranty Bancshares shares are owned by institutional investors. 8.9% of UMB Financial shares are owned by insiders. Comparatively, 26.4% of Guaranty Bancshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

UMB Financial has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Guaranty Bancshares has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.

Dividends

UMB Financial pays an annual dividend of $1.56 per share and has a dividend yield of 1.8%. Guaranty Bancshares pays an annual dividend of $0.96 per share and has a dividend yield of 3.1%. UMB Financial pays out 20.7% of its earnings in the form of a dividend. Guaranty Bancshares pays out 39.3% 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 31 consecutive years.

Analyst Ratings

This is a breakdown of current ratings for UMB Financial and Guaranty Bancshares, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UMB Financial 0 1 4 1 3.00
Guaranty Bancshares 0 2 1 0 2.33

UMB Financial presently has a consensus price target of $93.67, indicating a potential upside of 8.57%. Guaranty Bancshares has a consensus price target of $33.33, indicating a potential upside of 8.90%. Given Guaranty Bancshares’ higher probable upside, analysts plainly believe Guaranty Bancshares is more favorable than UMB Financial.

Profitability

This table compares UMB Financial and Guaranty Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UMB Financial 14.59% 14.30% 0.99%
Guaranty Bancshares 15.56% 8.69% 0.82%

Summary

UMB Financial beats Guaranty Bancshares on 12 of the 18 factors compared between the two stocks.

About UMB Financial

(Get Free Report)

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 Guaranty Bancshares

(Get Free Report)

Guaranty Bancshares, Inc. operates as the bank holding company for Guaranty Bank & Trust, N.A. that provides a range of commercial and consumer banking products and services for small- and medium-sized businesses, professionals, and individuals. The company offers checking and savings, money market, and business accounts, as well as certificates of deposit; and commercial and industrial, construction and development, 1-4 family residential, commercial real estate, farmland, agricultural, multi-family residential, and consumer loans. It also provides trustee, custodial and escrow, investment management, retirement plan, ATM, night depository, direct deposit, and cashier's check services, as well as online and mobile banking services; debit cards; letters of credit; and treasury management services, including wire transfer, positive pay, remote deposit capture, and automated clearinghouse services. Guaranty Bancshares, Inc. was founded in 1913 and is headquartered in Addison, Texas.

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.