Umpqua (NASDAQ: UMPQ) and First Niagara Financial Group (NASDAQ:FNFG) are both mid-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.
This table compares Umpqua and First Niagara Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Niagara Financial Group||14.04%||4.06%||0.47%|
Umpqua pays an annual dividend of $0.72 per share and has a dividend yield of 3.5%. First Niagara Financial Group pays an annual dividend of $0.32 per share and has a dividend yield of 3.1%. Umpqua pays out 67.9% of its earnings in the form of a dividend. First Niagara Financial Group pays out 65.3% 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.
This is a summary of recent ratings and recommmendations for Umpqua and First Niagara Financial Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Niagara Financial Group||0||0||0||0||N/A|
Umpqua presently has a consensus price target of $20.31, suggesting a potential downside of 2.39%. Given Umpqua’s higher probable upside, analysts clearly believe Umpqua is more favorable than First Niagara Financial Group.
Insider and Institutional Ownership
88.2% of Umpqua shares are owned by institutional investors. 0.5% of Umpqua shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Umpqua and First Niagara Financial Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Umpqua||$1.21 billion||3.79||$232.94 million||$1.06||19.63|
|First Niagara Financial Group||N/A||N/A||N/A||$0.49||20.78|
Umpqua has higher revenue and earnings than First Niagara Financial Group. Umpqua is trading at a lower price-to-earnings ratio than First Niagara Financial Group, indicating that it is currently the more affordable of the two stocks.
Umpqua beats First Niagara Financial Group on 10 of the 12 factors compared between the two stocks.
Umpqua Company Profile
Umpqua Holdings Corporation is a bank holding company. The Company’s principal operating subsidiaries include Umpqua Bank (the Bank) and Umpqua Investments, Inc. (Umpqua Investments). It operates through two segments: Community Banking and Home Lending. The Community Banking segment’s principal business focus is the offering of loan and deposit products to business and retail customers in its primary market areas. As of December 31, 2016, the Community Banking segment operated 346 locations throughout Oregon, California, Washington, Idaho and Nevada. The Home Lending segment originates, sells and services residential mortgage loans. The Company offers a range of traditional and digital financial products. Its products and services include Deposit Products, Private Bank, Broker Dealer and Investment Advisory Services, Commercial Loans and Leases and Commercial Real Estate Loans, and Consumer Loans.
First Niagara Financial Group Company Profile
First Niagara Financial Group Inc. is a bank holding company for First Niagara Bank, N.A. (the Bank). The Bank is engaged in providing financial services to individuals and businesses in New York, Western and Eastern Pennsylvania, Connecticut, and Western Massachusetts. The Bank is a nationally chartered regional bank providing financial services to individuals, families and businesses. The Bank operates through two segments: banking and financial services. The banking segment includes all of its retail and commercial banking operations. The financial services segment includes its insurance operations. Its financial services activities consist predominantly of insurance sales. Its financial services activities consist of insurance sales. The Bank provides a range of products and services through its retail consumer, commercial, business services and wealth management operations, including retail banking, cash management, insurance and wealth management products.
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