Capital Bancorp (NASDAQ:CBNK) and UMB Financial (NASDAQ:UMBF) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.
Risk and Volatility
Capital Bancorp has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, UMB Financial has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.
Earnings and Valuation
This table compares Capital Bancorp and UMB Financial’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Capital Bancorp||$107.87 million||1.40||$16.90 million||$1.21||9.03|
|UMB Financial||$1.29 billion||1.77||$243.60 million||$4.99||9.48|
UMB Financial has higher revenue and earnings than Capital Bancorp. Capital 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.
This table compares Capital Bancorp and UMB Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
22.3% of Capital Bancorp shares are owned by institutional investors. Comparatively, 84.8% of UMB Financial shares are owned by institutional investors. 41.6% of Capital Bancorp shares are owned by insiders. Comparatively, 10.2% of UMB Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations for Capital Bancorp and UMB Financial, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
UMB Financial has a consensus price target of $67.50, indicating a potential upside of 42.68%. Given UMB Financial’s higher probable upside, analysts clearly believe UMB Financial is more favorable than Capital Bancorp.
UMB Financial beats Capital Bancorp on 9 of the 13 factors compared between the two stocks.
Capital Bancorp Company Profile
Capital Bancorp, Inc. operates as the bank holding company for Capital Bank, N.A. that provides various commercial banking products and services to businesses, not-for-profit associations, and entrepreneurs in the United States. The company offers a range of deposit products and services, including various checking and savings accounts, certificates of deposit, money market accounts, debit cards, remote deposit capture services, online and mobile banking services, e-statements, and bank-by-mail and direct deposit services, as well as business accounts, and cash and treasury management services. It also provides lending services, such as residential and commercial real estate loans, construction loans, commercial business loans, and credit card lines, as well as loans to individuals comprising secured and unsecured installment and term loans, car loans, and boat loans. In addition, the company originates residential mortgages for sale in the secondary market; and offers short-term secured real estate financing services. It operates through five commercial bank branches, four mortgage offices, one loan production office, a limited service branch, corporate offices, and operations facilities in the greater Washington, D.C. and Baltimore, Maryland markets. The company was incorporated in 1998 and is headquartered in Rockville, Maryland.
UMB Financial Company Profile
UMB Financial Corporation operates as the bank holding company for the UMB Bank that provides various banking and other financial services. It operates through four segments: Commercial Banking, Institutional Banking, Personal Banking, and Healthcare Services. The Commercial Banking segment provides commercial loans, commercial credit cards, letters of credit, loan syndication services, consultative services, and various financial options; capital markets services, including asset-based financing, asset securitization, equity and mezzanine financing, factoring, and private and public placement of senior debt, as well as merger and acquisition consulting; and depository, account reconciliation, electronic fund transfer, controlled disbursements, lockbox, and remote deposit capture services. The Institutional Banking segment offers bond trading transactions, cash letter collections, investment portfolio accounting and safekeeping, asset/liability management reporting, and federal funds transactions; and fund administration and accounting, investor services and transfer agency, marketing and distribution, custody, and alternative investment services. The Personal Banking segment provides deposit accounts, retail credit cards, installment loans, home equity lines of credit, residential mortgages, and small business loans, as well as call center, Internet banking and ATM network, private banking, brokerage, insurance, investment advisory, trust, and custody services. The Healthcare Services segment offers healthcare payment solutions comprising custodial services for health savings accounts, as well as private label and multipurpose debit cards. The company operates through a network of branches and offices in the states of Missouri, Kansas, Colorado, Illinois, Oklahoma, Texas, Arizona, Nebraska, Pennsylvania, South Dakota, Indiana, Utah, Minnesota, California, and Wisconsin. UMB Financial Corporation was founded in 1913 and is headquartered in Kansas City, Missouri.
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