First of Long Island (NASDAQ:FLIC) and UMB Financial (NASDAQ:UMBF) Financial Analysis

First of Long Island (NASDAQ:FLIC) and UMB Financial (NASDAQ:UMBF) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Institutional and Insider Ownership

48.3% of First of Long Island shares are held by institutional investors. Comparatively, 87.8% of UMB Financial shares are held by institutional investors. 6.3% of First of Long Island shares are held by company insiders. Comparatively, 8.9% of UMB Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

First of Long Island has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, UMB Financial has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.

Valuation and Earnings

This table compares First of Long Island and UMB Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First of Long Island	$179.40 million	1.77	$17.08 million	$0.75	18.76
UMB Financial	$2.80 billion	1.99	$441.24 million	$8.99	12.70

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

Profitability

This table compares First of Long Island and UMB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First of Long Island	9.52%	4.74%	0.43%
UMB Financial	15.76%	13.73%	0.98%

Analyst Recommendations

This is a summary of current ratings for First of Long Island and UMB Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First of Long Island	0	1	0	0	2.00
UMB Financial	0	3	4	0	2.57

First of Long Island currently has a consensus target price of $13.00, indicating a potential downside of 7.60%. UMB Financial has a consensus target price of $130.14, indicating a potential upside of 13.99%. Given UMB Financial’s stronger consensus rating and higher possible upside, analysts clearly believe UMB Financial is more favorable than First of Long Island.

Dividends

First of Long Island pays an annual dividend of $0.84 per share and has a dividend yield of 6.0%. UMB Financial pays an annual dividend of $1.60 per share and has a dividend yield of 1.4%. First of Long Island pays out 112.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UMB Financial pays out 17.8% of its earnings in the form of a dividend. UMB Financial has raised its dividend for 22 consecutive years.

Summary

UMB Financial beats First of Long Island on 15 of the 17 factors compared between the two stocks.

About First of Long Island

The First of Long Island Corporation operates as the holding company for The First National Bank of Long Island that provides financial services to small and medium-sized businesses, professionals, consumers, municipalities, and other organizations. The company offers business and small business checking, personal checking, negotiable order of withdrawal, interest on lawyer, escrow service, rent security, personal and nonpersonal money market, savings, time deposit, and individual retirement accounts. It also provides commercial and residential mortgage, commercial and industrial, small business credit scored, Small Business Administration, construction and land development, consumer, and home equity lines/loans, as well as standby letters of credit; debit or credit cards; and overdraft facilities. In addition, the company offers life insurance, investment management, trust, estate and custody, retail investment, bill payment, lockbox, ACH, safe deposit box rental, wire transfer, money order, checkbook printing, check, ATM, and online and mobile banking services. The First of Long Island Corporation was founded in 1927 and is headquartered in Melville, New York.

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.