WBS vs UMBF

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

5% revenue growth year-over-year, versus 6. 1% for Webster Financial Corporation (WBS). Webster Financial Corporation (WBS) offers the better valuation at 12. 3x trailing P/E (11. 0x 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, Webster Financial Corporation (WBS) is the cheapest at 12.

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: Webster Financial Corporation wins at 0. 54x versus UMB Financial Corporation's 1. 14x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Webster Financial Corporation (WBS) delivered a total return of +43.

7%, compared to +41. 5% for UMB Financial Corporation (UMBF). Over 10 years, the gap is even starker: UMBF returned +165. 1% versus WBS's +148. 3%. 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), Webster Financial Corporation (WBS) is the lower-risk stock at 1.

12β versus UMB Financial Corporation's 1. 19β — meaning UMBF is approximately 6% more volatile than WBS relative to the S&P 500. On balance sheet safety, Webster Financial Corporation (WBS) carries a lower debt/equity ratio of 45% 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 6. 1% for Webster Financial Corporation (WBS). On earnings-per-share growth, the picture is similar: Webster Financial Corporation grew EPS 35. 2% 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.

Webster Financial Corporation (WBS) is the more profitable company, earning 22.

7% net margin versus 15. 8% for UMB Financial Corporation — meaning it keeps 22. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WBS leads at 28. 5% versus 20. 3% for UMBF. At the gross margin level — before operating expenses — WBS leads at 60. 8%, 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, Webster Financial Corporation (WBS) is the more undervalued stock at a PEG of 0. 54x versus UMB Financial Corporation's 1. 14x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, UMB Financial Corporation (UMBF) trades at 10. 3x forward P/E versus 11. 0x for Webster Financial Corporation — 0. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for UMBF: 14. 7% to $150. 40.

All stocks in this comparison pay dividends.

Webster Financial Corporation (WBS) offers the highest yield at 2. 3%, versus 1. 4% for UMB Financial Corporation (UMBF).

For long-horizon retirement investors, Webster Financial Corporation (WBS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

12), 2. 3% yield, +148. 3% 10Y return). Both have compounded well over 10 years (WBS: +148. 3%, UMBF: +165. 1%), 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: WBS is a mid-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.