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How Does UMB Financial Compare to Its Peers?

US Equity Market Update: October 27, 2015

(Continued from Prior Part)

UMB Financial and its peers

Let’s look at how UMB Financial (UMBF) compares to its peers.

  • The forward PE (price-to-earnings) ratios of UMB Financial (UMBF), BOK Financial (BOKF), Commerce Bancshares (CBSH), Wintrust Financial (WTFC), and First Midwest Bancorp (FMBI) are 16.12x, 13.19x, 15.51x, 14.35x, and 14.12x, respectively.

  • The PBV (price-to-book value) ratios of UMB, BOK, Commerce Bancshares, Wintrust, and First Midwest Bancorp are 1.26x, 1.27x, 1.86x, 1.17x, and 1.18x, respectively.

  • The EPS (earnings per share) of UMB, Commerce Bancshares, Wintrust, and First Midwest Bancorp are $0.46, $0.68, $0.69, and $0.30, respectively, in 3Q15.

According to the above figures, the peers are way ahead of UMB Financial based on EPS. However, UMB Financial has outperformed its peers based on forward PE.

ETFs that invest in UMB Financial

The PowerShares KBW Regional Bank ETF (KBWR) invests 2.1% of its holdings in UMB. The ETF tracks an equal-weighted index focused exclusively on US regional banking firms.

The SPDR S&P Bank ETF (KBE) invests 1.5% of its holdings in UMB. The ETF tracks an equal-weighted index of US banking firms.

The PowerShares S&P SmallCap Financials ETF (PSCF) invests 1.3% of its holdings in UMB. The ETF tracks a market-cap weighted index of financial services companies in the US small-cap market.

The Guggenheim Insider Sentiment ETF (NFO) invests 0.98% of its holdings in UMB. The ETF tracks an equal-weighted index of the 100 US stocks selected by increases in earnings estimates and publicly available buying trends of corporate insiders.

UMB Financial compared to its ETFs

Now let’s compare UMB to the ETFs that invest in it.

  • The year-to-date price movements of UMB, KBWR, KBE, NFO, and PSCF are -10.2%, 7.0%, 4.3%, -3.1%, and 3.2%, respectively.

  • The PE (price-to-earnings) ratios of UMB, KBWR, KBE, NFO, and PSCF are 18.33x, 18.85x, 14.01x, 15.66x, and 19.21x, respectively.

  • The PBV (price-to-book value) ratios of UMB, KBWR, KBE, NFO, and PSCF are 1.26x, 1.39x, 1.21x, 2.28x, and 1.59x, respectively.

The ETFs have outperformed UMB Financial based on price movement and PBV.

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