LCNB (NASDAQ:LCNB) and UMB Financial (NASDAQ:UMBF) Head-To-Head Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LCNB	5.88%	6.39%	0.67%
UMB Financial	14.44%	13.80%	0.99%

Volatility and Risk

LCNB has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, UMB Financial has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.

Valuation and Earnings

This table compares LCNB and UMB Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LCNB	$95.01 million	2.22	$12.63 million	$0.51	29.26
UMB Financial	$2.38 billion	2.46	$350.02 million	$8.00	14.98

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

Analyst Ratings

This is a summary of recent recommendations for LCNB and UMB Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LCNB	0	1	0	0	2.00
UMB Financial	0	2	5	1	2.88

LCNB currently has a consensus price target of $16.25, suggesting a potential upside of 8.91%. UMB Financial has a consensus price target of $124.00, suggesting a potential upside of 3.46%. Given LCNB’s higher probable upside, equities research analysts plainly believe LCNB is more favorable than UMB Financial.

Institutional and Insider Ownership

34.7% of LCNB shares are owned by institutional investors. Comparatively, 87.8% of UMB Financial shares are owned by institutional investors. 5.8% of LCNB shares are owned by insiders. Comparatively, 8.9% of UMB Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

LCNB pays an annual dividend of $0.88 per share and has a dividend yield of 5.9%. UMB Financial pays an annual dividend of $1.60 per share and has a dividend yield of 1.3%. LCNB pays out 172.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UMB Financial pays out 20.0% of its earnings in the form of a dividend. UMB Financial has raised its dividend for 22 consecutive years.

Summary

UMB Financial beats LCNB on 15 of the 18 factors compared between the two stocks.

About LCNB

LCNB Corp. operates as the financial holding company for LCNB National Bank that provides banking services in Ohio. Its deposit products include checking accounts, demand deposits, savings accounts, NOW and money market deposits, as well as individual retirement accounts and time certificates. The company's loan products comprise commercial and industrial, commercial and residential real estate, agricultural, construction, and small business administration loans; and residential mortgage loans that consists of loans for purchasing or refinancing personal residences, home equity lines of credit, and loans for commercial or consumer purposes secured by residential mortgages. It offers consumer loans, such as automobile, recreational vehicles, boat, home improvement, and personal loans. In addition, the company provides trust administration, estate settlement, and fiduciary services; and investment management services for trusts, agency accounts, individual retirement accounts, and foundations/endowments. Further, it offers investment services and products, including financial needs analysis, mutual funds, securities trading, annuities, and life insurance; and security brokerage services. Additionally, the company provides safe deposit boxes, night depositories, cashier's checks, bank-by-mail, ATMs, cash and transaction services, debit cards, wire transfers, electronic funds transfer, utility bill collections, notary public service, cash management services, telephone banking, PC Internet banking, mobile banking, and other services for individuals and businesses. LCNB Corp. was founded in 1877 and is headquartered in Lebanon, Ohio.

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.