HOMB vs UMBF

For growth investors, UMB Financial Corporation (UMBF) is the stronger pick with 68.

5% revenue growth year-over-year, versus 9. 5% for Home Bancshares, Inc. (HOMB). Home Bancshares, Inc. (HOMB) offers the better valuation at 13. 3x trailing P/E (10. 8x forward), making it the more compelling value choice. Analysts rate UMB Financial Corporation (UMBF) a "Buy" — based on 18 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Home Bancshares, Inc.

(HOMB) is the cheapest at 13. 3x versus UMB Financial Corporation at 14. 4x. On forward P/E, UMB Financial Corporation is actually cheaper at 10. 3x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: UMB Financial Corporation wins at 1. 14x versus Home Bancshares, Inc. 's 3. 53x — a reasonable growth-adjusted valuation.

Over the past 5 years, UMB Financial Corporation (UMBF) delivered a total return of +42.

6%, compared to +6. 2% for Home Bancshares, Inc. (HOMB). Over 10 years, the gap is even starker: UMBF returned +168. 6% versus HOMB's +58. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Home Bancshares, Inc.

(HOMB) is the lower-risk stock at 0. 82β versus UMB Financial Corporation's 1. 19β — meaning UMBF is approximately 46% more volatile than HOMB relative to the S&P 500. On balance sheet safety, Home Bancshares, Inc. (HOMB) carries a lower debt/equity ratio of 30% versus 49% for UMB Financial Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), UMB Financial Corporation (UMBF) is pulling ahead at 68.

5% versus 9. 5% for Home Bancshares, Inc. (HOMB). On earnings-per-share growth, the picture is similar: Home Bancshares, Inc. grew EPS 3. 6% year-over-year, compared to 1. 6% for UMB Financial Corporation. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Home Bancshares, Inc.

(HOMB) is the more profitable company, earning 27. 7% net margin versus 15. 8% for UMB Financial Corporation — meaning it keeps 27. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HOMB leads at 36. 0% versus 20. 3% for UMBF. At the gross margin level — before operating expenses — HOMB leads at 65. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, UMB Financial Corporation (UMBF) is the more undervalued stock at a PEG of 1. 14x versus Home Bancshares, Inc. 's 3. 53x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, UMB Financial Corporation (UMBF) trades at 10. 3x forward P/E versus 10. 8x for Home Bancshares, Inc. — 0. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HOMB: 19. 9% to $32. 00.

All stocks in this comparison pay dividends.

Home Bancshares, Inc. (HOMB) offers the highest yield at 2. 8%, versus 1. 4% for UMB Financial Corporation (UMBF).

For long-horizon retirement investors, Home Bancshares, Inc.

(HOMB) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 82), 2. 8% yield). Both have compounded well over 10 years (HOMB: +58. 2%, UMBF: +168. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: HOMB is a small-cap deep-value stock; UMBF is a small-cap high-growth stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.