Financial Review: Lifestore Financial Group (OTCMKTS:LSFG) vs. UMB Financial (NASDAQ:UMBF)

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

Dividends

UMB Financial pays an annual dividend of $1.56 per share and has a dividend yield of 1.9%. Lifestore Financial Group pays an annual dividend of $0.55 per share and has a dividend yield of 1.4%. UMB Financial pays out 20.7% of its earnings in the form of a dividend. UMB Financial has increased its dividend for 31 consecutive years. UMB Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares UMB Financial and Lifestore Financial Group’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UMB Financial	$2.38 billion	1.66	$350.02 million	$7.53	10.75
Lifestore Financial Group	N/A	N/A	N/A	N/A	N/A

UMB Financial has higher revenue and earnings than Lifestore Financial Group.

Analyst Ratings

This is a breakdown of current ratings and target prices for UMB Financial and Lifestore Financial Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UMB Financial	0	1	4	1	3.00
Lifestore Financial Group	0	0	0	0	N/A

UMB Financial currently has a consensus price target of $92.83, suggesting a potential upside of 14.67%. Given UMB Financial’s higher probable upside, research analysts clearly believe UMB Financial is more favorable than Lifestore Financial Group.

Risk and Volatility

UMB Financial has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Lifestore Financial Group has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UMB Financial	14.59%	14.30%	0.99%
Lifestore Financial Group	N/A	N/A	N/A

Insider and Institutional Ownership

87.8% of UMB Financial shares are owned by institutional investors. 8.9% of UMB Financial shares are owned by company insiders. Comparatively, 12.2% of Lifestore Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

UMB Financial beats Lifestore Financial Group on 10 of the 13 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 Lifestore Financial Group

LifeStore Financial Group, Inc. operates as a federally chartered thrift holding company for LifeStore Bank that provides personal and business banking products and services in North Carolina. The company offers checking, savings, and money market accounts, as well as certificates of deposit; mortgage loans, automobile loans, home equity lines of credit, commercial real estate loans, commercial construction loans, investment property loans, equipment loans, working capital loans/lines of credit, and small business administration loans; and credit cards. It also provides insurance agency products and services; investment and cash management services; and online and mobile banking services. The company was formerly known as AF Financial Group and changed its name to LifeStore Financial Group, Inc. in September 2009. LifeStore Financial Group, Inc. was founded in 1939 and is headquartered in West Jefferson, North Carolina. Lifestore Financial Group, Inc. operates as a subsidiary of AsheCo MHC, Inc.