Head-To-Head Analysis: Solera National Bancorp (OTCMKTS:SLRK) and UMB Financial (NASDAQ:UMBF)

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

Earnings and Valuation

This table compares Solera National Bancorp and UMB Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solera National Bancorp	$65.19 million	0.64	$16.66 million	$3.78	2.55
UMB Financial	$2.38 billion	2.49	$350.02 million	$8.00	15.20

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Solera National Bancorp	21.92%	N/A	N/A
UMB Financial	14.44%	13.80%	0.99%

Analyst Recommendations

This is a summary of current recommendations for Solera National Bancorp and UMB Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solera National Bancorp	0	0	0	0	0.00
UMB Financial	0	2	5	1	2.88

UMB Financial has a consensus price target of $124.00, suggesting a potential upside of 1.96%. Given UMB Financial’s stronger consensus rating and higher possible upside, analysts clearly believe UMB Financial is more favorable than Solera National Bancorp.

Insider & Institutional Ownership

87.8% of UMB Financial shares are owned by institutional investors. 17.4% of Solera National Bancorp 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.

Volatility and Risk

Solera National Bancorp has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, UMB Financial has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Summary

UMB Financial beats Solera National Bancorp on 13 of the 15 factors compared between the two stocks.

About Solera National Bancorp

Solera National Bancorp, Inc. operates as the bank holding company for Solera National Bank that provides commercial and consumer banking services in the United States. The company offers checking and savings accounts, money market accounts, time and demand deposits, and individual retirement accounts (IRA), as well as certificates of deposit; and real estate secured loans, construction loans, small business administration loans, business lines of credit, and equipment financing. It also provides online banking, account analysis, combined account analysis, commercial sweep, remote deposit, ACH origination, payroll direct deposit, merchant, business debit card, and cash management services. The company was incorporated in 2006 and is based in Lakewood, Colorado.

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.