Head to Head Contrast: UMB Financial (NASDAQ:UMBF) and Heartland BancCorp. (OTCMKTS:HLAN)

Heartland BancCorp. (OTCMKTS:HLAN – Get Free Report) and UMB Financial (NASDAQ:UMBF – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Earnings & Valuation

This table compares Heartland BancCorp. and UMB Financial”s revenue, earnings per share and valuation.

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

Dividends

Heartland BancCorp. pays an annual dividend of $0.76 per share and has a dividend yield of 0.5%. UMB Financial pays an annual dividend of $1.72 per share and has a dividend yield of 1.5%. Heartland BancCorp. pays out 7.8% of its earnings in the form of a dividend. UMB Financial pays out 19.5% 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 32 consecutive years. UMB Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

Institutional and Insider Ownership

7.5% of Heartland BancCorp. shares are owned by institutional investors. Comparatively, 87.8% of UMB Financial shares are owned by institutional investors. 22.7% of Heartland BancCorp. shares are owned by insiders. Comparatively, 5.5% of UMB Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Heartland BancCorp. and UMB Financial, as reported by MarketBeat.com.

UMB Financial has a consensus price target of $137.20, suggesting a potential upside of 21.91%. Given UMB Financial’s stronger consensus rating and higher possible upside, analysts clearly believe UMB Financial is more favorable than Heartland BancCorp..

Summary

UMB Financial beats Heartland BancCorp. on 13 of the 17 factors compared between the two stocks.

About Heartland BancCorp.

(Get Free Report)

Heartland BancCorp operates as the bank holding company for Heartland Bank that provides various banking and financial services to individual and corporate customers. The company offers personal and business checking and savings accounts. It also provides various lending solutions comprising agricultural loans, commercial and business lending, home and personal loans, and title services. In addition, the company offers online banking, treasury management, credit and debit card, and mobile wallet services. Further, it provides education planning, insurance, wealth management, and retirement planning services. Heartland BancCorp was founded in 1911 and is based in Whitehall, Ohio.

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.