Head-To-Head Survey: Ohio Valley Banc (NASDAQ:OVBC) vs. UMB Financial (NASDAQ:UMBF)

UMB Financial (NASDAQ:UMBF) and Ohio Valley Banc (NASDAQ:OVBC) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Institutional and Insider Ownership

87.8% of UMB Financial shares are owned by institutional investors. Comparatively, 22.1% of Ohio Valley Banc shares are owned by institutional investors. 5.5% of UMB Financial shares are owned by company insiders. Comparatively, 7.1% of Ohio Valley Banc shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares UMB Financial and Ohio Valley 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	3.14	$441.24 million	$8.83	13.10
Ohio Valley Banc	$88.93 million	2.13	$11.00 million	$3.00	13.40

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

Profitability

This table compares UMB Financial and Ohio Valley 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%
Ohio Valley Banc	14.97%	8.97%	0.93%

Dividends

UMB Financial pays an annual dividend of $1.72 per share and has a dividend yield of 1.5%. Ohio Valley Banc pays an annual dividend of $0.92 per share and has a dividend yield of 2.3%. UMB Financial pays out 19.5% of its earnings in the form of a dividend. Ohio Valley Banc pays out 30.7% 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 and Ohio Valley Banc has raised its dividend for 3 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for UMB Financial and Ohio Valley Banc, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UMB Financial	0	2	10	1	2.92
Ohio Valley Banc	0	0	1	0	3.00

UMB Financial currently has a consensus price target of $137.20, suggesting a potential upside of 18.60%. Given UMB Financial’s higher probable upside, equities research analysts clearly believe UMB Financial is more favorable than Ohio Valley Banc.

Summary

UMB Financial beats Ohio Valley Banc on 13 of the 17 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 Ohio Valley Banc

Ohio Valley Banc Corp. operates as the bank holding company for The Ohio Valley Bank Company that provides commercial and consumer banking products and services. The company operates in two segments, Banking and Consumer Finance. It accepts various deposit products, including checking, savings, time, and money market accounts, as well as individual retirement accounts, demand deposits, NOW accounts, and certificates of deposit. The company also provides various residential real estate loans, including one-to four-family residential mortgages; commercial loans for securing equipment, inventory, stock, commercial real estate, and rental property; and consumer loans secured by automobiles, mobile homes, recreational vehicles, and other personal property, as well as personal loans, unsecured credit card receivables, floor plan and student loans, and construction loans. In addition, it offers safe deposit box, wire transfer, credit card, home equity loans, and Internet banking services; and financial management online services, such as cash management and news updates related to repossession auctions, current rates, and general bank news. Further, the company provides automatic teller machines (ATMs), consumer finance, seasonal tax preparation, commercial property, and various liability insurance services, as well as trust and online-only consumer direct mortgage services. The company owns and operates ATMs, including off-site ATMs. It operates offices in Ohio and West Virginia. The company was founded in 1872 and is based in Gallipolis, Ohio.