Comparing Univest Financial (NASDAQ:UVSP) and Wintrust Financial (NASDAQ:WTFC)

Univest Financial (NASDAQ:UVSPGet Rating) and Wintrust Financial (NASDAQ:WTFCGet Rating) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Earnings and Valuation

This table compares Univest Financial and Wintrust Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Univest Financial $292.95 million 2.55 $91.80 million $2.69 9.40
Wintrust Financial $1.86 billion 2.55 $466.15 million $7.12 10.99

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

Profitability

This table compares Univest Financial and Wintrust Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Univest Financial 27.43% 10.45% 1.15%
Wintrust Financial 23.67% 10.95% 0.90%

Institutional and Insider Ownership

72.2% of Univest Financial shares are owned by institutional investors. Comparatively, 89.7% of Wintrust Financial shares are owned by institutional investors. 2.2% of Univest Financial shares are owned by company insiders. Comparatively, 1.4% of Wintrust Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Univest Financial has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Wintrust Financial has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Univest Financial and Wintrust Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Univest Financial 0 0 1 0 3.00
Wintrust Financial 0 0 6 1 3.14

Univest Financial currently has a consensus target price of $34.00, suggesting a potential upside of 34.49%. Wintrust Financial has a consensus target price of $113.14, suggesting a potential upside of 44.55%. Given Wintrust Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Wintrust Financial is more favorable than Univest Financial.

Dividends

Univest Financial pays an annual dividend of $0.84 per share and has a dividend yield of 3.3%. Wintrust Financial pays an annual dividend of $1.36 per share and has a dividend yield of 1.7%. Univest Financial pays out 31.2% of its earnings in the form of a dividend. Wintrust Financial pays out 19.1% 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. Univest Financial has raised its dividend for 1 consecutive years and Wintrust Financial has raised its dividend for 9 consecutive years.

Summary

Wintrust Financial beats Univest Financial on 13 of the 18 factors compared between the two stocks.

About Univest Financial (Get Rating)

Univest Financial Corporation operates as the bank holding company for Univest Bank and Trust Co. that provides banking products and services primarily in Pennsylvania. It operates through three segments: Banking, Wealth Management, and Insurance. The Banking segment provides a range of banking services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking, and equipment lease financing services for individuals, businesses, municipalities, and nonprofit organizations. The Wealth Management segment offers investment advisory, financial planning, and trust and brokerage services for private families and individuals, municipal pension plans, retirement plans, and trusts and guardianships. The Insurance segment provides commercial property and casualty insurance, employee benefits solutions, personal insurance lines, and human resources consulting services. It serves customers primarily in Bucks, Berks, Chester, Cumberland, Dauphin, Delaware, Lancaster, Lehigh, Montgomery, Northampton, Philadelphia, and York counties in Pennsylvania; and Atlantic, Burlington, and Cape May counties in New Jersey through 37 banking offices. The company was formerly known as Univest Corporation of Pennsylvania and changed its name to Univest Financial Corporation in January 2019. Univest Financial Corporation was founded in 1876 and is headquartered in Souderton, Pennsylvania.

About Wintrust Financial (Get Rating)

Wintrust Financial Corporation operates as a financial holding company. It operates in three segments: Community Banking, Specialty Finance, and Wealth Management. The Community Banking segment offers non-interest bearing deposits, non-brokered interest-bearing transaction accounts, and savings and domestic time deposits; home equity, consumer, and real estate loans; safe deposit facilities; and automatic teller machine (ATM), online and mobile banking, and other services. It also engages in the retail origination and purchase of residential mortgages for sale into the secondary market; and provision of lending, deposits, and treasury management services to condominium, homeowner, and community associations, as well as asset-based lending for middle-market companies. In addition, this segment offers loan and deposit services to mortgage brokerage companies; lending to restaurant franchisees; direct leasing; small business administration loans; commercial mortgages and construction loans; and financial solutions. It provides personal and commercial banking services primarily to individuals, small to mid-sized businesses, local governmental units, and institutional clients. The Specialty Finance segment offers commercial and life insurance premiums financing for businesses and individuals; accounts receivable financing, value-added, and out-sourced administrative services; and other specialty finance services, as well as data processing of payrolls, billing, and cash management services to temporary staffing industry. The Wealth Management segment provides trust and investment, asset management, tax-deferred exchange, securities brokerage, and retirement plan services. The company operates 173 banking facilities and 228 ATMs in the Chicago metropolitan area, southern Wisconsin, northwest Indiana, and Florida. Wintrust Financial Corporation was founded in 1991 and is headquartered in Rosemont, Illinois.

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