Critical Survey: Hope Bancorp (HOPE) & UMB Financial (UMBF)

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Hope Bancorp (NASDAQ: UMBF) and UMB Financial (NASDAQ:UMBF) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Risk & Volatility

Hope Bancorp has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, UMB Financial has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Hope Bancorp and UMB Financial, as reported by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hope Bancorp 0 6 0 0 2.00
UMB Financial 0 3 0 0 2.00

Hope Bancorp currently has a consensus target price of $19.10, suggesting a potential upside of 9.27%. UMB Financial has a consensus target price of $79.67, suggesting a potential upside of 6.83%. Given Hope Bancorp’s higher probable upside, research analysts clearly believe Hope Bancorp is more favorable than UMB Financial.

Insider & Institutional Ownership

90.1% of Hope Bancorp shares are held by institutional investors. Comparatively, 89.3% of UMB Financial shares are held by institutional investors. 5.1% of Hope Bancorp shares are held by company insiders. Comparatively, 10.3% 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 company will outperform the market over the long term.


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

Net Margins Return on Equity Return on Assets
Hope Bancorp 23.76% 9.68% 1.29%
UMB Financial 25.18% 9.94% 1.03%

Valuation & Earnings

This table compares Hope Bancorp and UMB Financial’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hope Bancorp $638.52 million 3.56 $139.44 million $1.22 14.33
UMB Financial $1.04 billion 3.59 $247.10 million $3.75 19.89

UMB Financial has higher revenue and earnings than Hope Bancorp. Hope 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.


Hope Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.2%. UMB Financial pays an annual dividend of $1.16 per share and has a dividend yield of 1.6%. Hope Bancorp pays out 45.9% of its earnings in the form of a dividend. UMB Financial pays out 30.9% 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 raised its dividend for 13 consecutive years.


UMB Financial beats Hope Bancorp on 10 of the 15 factors compared between the two stocks.

Hope Bancorp Company Profile

Hope Bancorp, Inc. operates as the bank holding company for Bank of Hope that provides banking services primarily to small and medium-sized businesses and individuals in the United States. The company offers personal and business checking, money market, savings, time deposit, and individual retirement accounts. It also provides commercial loans to businesses for various purposes, such as working capital, purchasing inventory, debt refinancing, business acquisitions, and other business related financing needs; commercial real estate loans; small business administration (SBA) loans; and consumer loans, such as auto, home equity, single-family mortgage, and signature loans. In addition, the company offers trade finance services, including the issuance and negotiation of letters of credit, as well as handles documentary collections; commercial equipment lease financing; and warehouse lines of credit to mortgage loan originators. Further, it provides cash management services, such as remote deposit capture, lock box, and ACH origination services; investment and wealth management services to high-net-worth clients; mobile banking; debit and credit card services; foreign exchanges services, safe deposit boxes, and other customary bank services; and Internet banking and bill-pay services, as well as operates automated teller machines. As of February 27, 2018, the company operated 63 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Georgia, and Alabama; SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, Oregon, and Annandale, Virginia; a commercial loan production office in Fremont, California; residential mortgage loan production offices in California; and a representative office in Seoul, Korea. The company was formerly known as BBCN Bancorp, Inc. and changed its name to Hope Bancorp, Inc. in August 2016. Hope Bancorp, Inc. was incorporated in 2000 and is headquartered in Los Angeles, California.

UMB Financial Company Profile

UMB Financial Corporation, a bank holding company, provides various banking and other financial services. It operates through two segments, Bank and Asset Servicing. The Bank segment offers a range of banking services to commercial, retail, government, and correspondent bank customers through its branches, call center, Internet banking, and ATM network. Its services comprise traditional commercial and consumer banking, treasury management, leasing, foreign exchange, merchant bankcard, wealth management, brokerage, insurance, capital markets, investment banking, corporate trust, and correspondent banking. The Asset Servicing segment provides services to the asset management industry, including a range of investment products, such as mutual funds, alternative investments, and managed accounts. Its services include fund administration, fund accounting, investor services, transfer agency, distribution, marketing, custody, alternative investment services, and collective and multiple-series trust services. 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. The company was founded in 1913 and is headquartered in Kansas City, Missouri.

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