Western Alliance vs UMB Financial

Western Alliance Bancorporation and UMB Financial Corp are compared to illustrate differences in business models, financial performance, and market context. This page presents neutral, accessible descriptions and context to help readers understand each company without forecasts or advice. Educational content, not financial advice.

Western Alliance Bancorporation and UMB Financial Corp are compared to illustrate differences in business models, financial performance, and market context. This page presents neutral, accessible desc...

Comparison Snapshot

Key Financial Metrics

WAL

Metric

UMBF

$9.44B

Market Cap

$9.15B

11.39%

Potential Profit

9.72%

Buy

Analyst Rating

Buy

Investment Analysis

Western Alliance

WAL

Pros

Reported stronger-than-expected earnings in Q3 2025 with EPS of $2.28 surpassing forecasted $2.08 and revenue of $938.2 million exceeding estimates.
Pre-provision net revenue grew over 30% year-over-year in the latest quarter, with solid earnings growth potential and improving mid-teens return on tangible common equity.
Stock trades at attractive valuation multiples below 8x forward earnings estimates for 2026/2027, suggesting undervaluation relative to expected earnings growth.

Considerations

Credit concerns remain prevalent due to exposures linked to Cantor Group V and First Brands-connected Point Bonita Fund, causing analyst price target reductions.
Stock price has declined over 6% in the past 12 months and recent forecasts show potential decline next year to roughly $69.80, reflecting market skepticism.
Higher beta (~1.32) indicates greater stock price volatility and sensitivity to market fluctuations compared to peers.

UMB Financial

UMBF

Pros

UMB Financial shows stronger overall operational metrics compared to Western Alliance, including superior book value per share and lower stock price volatility (beta ~0.78).
Company holds a competitive advantage in 11 critical financial metrics versus Western Alliance’s 7, indicating robust financial health and efficiency.
Market capitalization is comparable to Western Alliance, providing a meaningful scale in the mid-size regional banking sector.

Considerations

UMB Financial's price-to-sales and forward P/E ratios are higher, which may indicate the stock is less attractively valued relative to Western Alliance.
The company demonstrated slower revenue growth than Western Alliance, which reported revenue of $3.19 billion trailing twelve months, highlighting potential growth limitations.
UMB’s PEG ratio is lower, which may reflect lower expected earnings growth compared to Western Alliance's higher growth forecasts.

About The Companies

Western Alliance (WAL)

Western Alliance Bancorporation (WAL) is a regional commercial bank headquartered in Phoenix, Arizona, with a focus on business and commercial real-estate lending across Sunbelt and Western US markets. With a market capitalisation near $8.4 billion, it serves businesses, developers and private clients through specialised lending teams and commercial banking services. Investors should note WAL’s exposure to commercial real estate and commercial lending, which can amplify sensitivity to economic cycles, growth in interest rates and local property markets. The bank’s earnings profile depends on net interest margins, deposit trends and credit performance; liquidity and capital levels are important metrics to watch. Recent industry volatility has underlined regulatory and funding risks for regional banks, so prospective investors should weigh potential returns against concentration risk, macro uncertainty and possible earnings volatility. This summary is educational only and not personal advice; investors should assess suitability, diversify and consider professional guidance before acting.

UMB Financial (UMBF)

UMB Financial Corp is a diversified financial services holding company offering a broad range of products to individuals and institutions. Its operations are organised into three main segments: Commercial Banking, Institutional Banking, and Personal Banking. The Commercial Banking segment focuses on small to middle-market businesses, providing lending, treasury management, and retirement plan services. The Institutional Banking arm delivers specialised services like asset servicing, corporate trust solutions, and investment banking. For individual clients, the Personal Banking division offers everyday banking products, including deposit accounts, credit cards, mortgages, and wealth management services. This structure allows UMB to serve a wide spectrum of the market, from individual savers to large corporations. As with any financial institution, its performance can be influenced by economic conditions and interest rate changes.

Which Baskets Do They Appear In?

Regulatory Relief for Big Banks

This carefully selected group of stocks focuses on banking institutions that could benefit from the Federal Reserve's proposal to ease regulatory standards. These companies are positioned to see reduced compliance costs and fewer operational restrictions, potentially boosting their profitability and stock performance.

Published: July 14, 2025

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Community Banking Catalyst

This carefully selected group of stocks features regional and community banks positioned to benefit from the FDIC's proposed simplification of the Community Reinvestment Act. Our professional analysts identified these financial institutions as potentially gaining from reduced regulatory burdens, which could boost lending capacity and shareholder value.

Published: July 14, 2025

Explore Basket

Which Baskets Do They Appear In?

Regulatory Relief for Big Banks

This carefully selected group of stocks focuses on banking institutions that could benefit from the Federal Reserve's proposal to ease regulatory standards. These companies are positioned to see reduced compliance costs and fewer operational restrictions, potentially boosting their profitability and stock performance.

Published: July 14, 2025

Explore Basket

Community Banking Catalyst

This carefully selected group of stocks features regional and community banks positioned to benefit from the FDIC's proposed simplification of the Community Reinvestment Act. Our professional analysts identified these financial institutions as potentially gaining from reduced regulatory burdens, which could boost lending capacity and shareholder value.

Published: July 14, 2025

Explore Basket

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Comparison Snapshot