Pinnacle Bankshares (PPBN) & UMB Financial (UMBF) Financial Review

Pinnacle Bankshares (OTCMKTS:PPBN) 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 analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings for Pinnacle Bankshares and UMB Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pinnacle Bankshares 0 0 0 0 N/A
UMB Financial 0 2 2 0 2.50

UMB Financial has a consensus target price of $71.67, suggesting a potential upside of 7.77%. Given UMB Financial’s higher possible upside, analysts plainly believe UMB Financial is more favorable than Pinnacle Bankshares.

Profitability

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

Net Margins Return on Equity Return on Assets
Pinnacle Bankshares 18.51% 10.24% 0.89%
UMB Financial 16.66% 8.90% 0.90%

Dividends

Pinnacle Bankshares pays an annual dividend of $0.50 per share and has a dividend yield of 1.5%. UMB Financial pays an annual dividend of $1.20 per share and has a dividend yield of 1.8%. UMB Financial pays out 29.8% of its earnings in the form of a dividend. UMB Financial has raised its dividend for 14 consecutive years. UMB Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Pinnacle Bankshares has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, UMB Financial has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Earnings & Valuation

This table compares Pinnacle Bankshares and UMB Financial’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pinnacle Bankshares $22.47 million 2.29 $4.16 million N/A N/A
UMB Financial $1.13 billion 2.88 $195.51 million $4.03 16.50

UMB Financial has higher revenue and earnings than Pinnacle Bankshares.

Institutional and Insider Ownership

5.8% of Pinnacle Bankshares shares are held by institutional investors. Comparatively, 88.5% of UMB Financial shares are held by institutional investors. 6.5% of Pinnacle Bankshares shares are held by insiders. Comparatively, 10.5% of UMB Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

UMB Financial beats Pinnacle Bankshares on 12 of the 15 factors compared between the two stocks.

About Pinnacle Bankshares

Pinnacle Bankshares Corporation operates as a bank holding company for First National Bank that provides a range of commercial and retail banking products and services in the United States. The company offers checking and savings accounts, money market accounts, individual retirement accounts, certificates of deposit, and savings and time deposits. It also provides residential and commercial mortgages, home equity loans, consumer installment loans, construction loans, agricultural loans, investment loans, small business loans, commercial lines of credit, letters of credit, real estate mortgages, and student loans, as well as overdraft protection. It also provides insurance, including property and casualty, life, and health, as well as investment and annuity products; merchant bankcard processing and cash management services; surety bonds; and check and credit cards, telephone banking, ATM, simplified employee pensions, and e-commerce and other services. The company offers its products and services through nine offices, including main office and Vista Branch in the Town of Altavista; the Airport, Timberlake, and Rustburg branches in Campbell County; Old Forest Road branch and Odd Fellows Road branch in the City of Lynchburg; Forest branch in Bedford County; and Amherst branch in the Town of Amherst. Pinnacle Bankshares Corporation was founded in 1908 and is headquartered in Altavista, Virginia.

About UMB Financial

UMB Financial Corporation operates as the bank holding company for the UMB Bank that provides various banking and other financial services. It operates through four segments: Commercial Banking, Institutional Banking, Personal Banking, and Healthcare Services. The Commercial Banking segment provides commercial loans, commercial credit cards, letters of credit, loan syndication services, consultative services, and various financial options; capital markets services, including asset-based financing, asset securitization, equity and mezzanine financing, factoring, and private and public placement of senior debt, as well as merger and acquisition consulting; and depository, account reconciliation, electronic fund transfer, controlled disbursements, lockbox, and remote deposit capture services. The Institutional Banking segment offers bond trading transactions, cash letter collections, investment portfolio accounting and safekeeping, asset/liability management reporting, and federal funds transactions; and fund administration and accounting, investor services and transfer agency, marketing and distribution, custody, and alternative investment services. The Personal Banking segment provides deposit accounts, retail credit cards, installment loans, home equity lines of credit, residential mortgages, and small business loans, as well as call center, Internet banking and ATM network, private banking, brokerage, insurance, investment advisory, trust, and custody services. The Healthcare Services segment offers healthcare payment solutions comprising custodial services for health savings accounts, as well as private label and multipurpose debit cards. The company operates through a network of branches and offices in the states of Missouri, Kansas, Colorado, Illinois, Oklahoma, Texas, Arizona, Nebraska, Pennsylvania, South Dakota, Indiana, Utah, Minnesota, California, and Wisconsin. UMB Financial Corporation was founded in 1913 and is headquartered in Kansas City, Missouri.

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