Analyzing Cullen/Frost Bankers (NYSE:CFR) and UBS Group (NYSE:UBS)

Cullen/Frost Bankers (NYSE:CFR) and UBS Group (NYSE:UBS) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Cullen/Frost Bankers and UBS Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cullen/Frost Bankers 2 4 2 0 2.00
UBS Group 1 3 3 0 2.29

Cullen/Frost Bankers currently has a consensus target price of $99.50, suggesting a potential upside of 14.37%. UBS Group has a consensus target price of $15.00, suggesting a potential upside of 41.11%. Given UBS Group’s stronger consensus rating and higher probable upside, analysts clearly believe UBS Group is more favorable than Cullen/Frost Bankers.

Profitability

This table compares Cullen/Frost Bankers and UBS Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cullen/Frost Bankers 31.57% 13.85% 1.47%
UBS Group 14.20% 8.07% 0.45%

Valuation and Earnings

This table compares Cullen/Frost Bankers and UBS Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cullen/Frost Bankers $1.40 billion 3.89 $454.91 million $6.90 12.61
UBS Group $41.26 billion 0.99 $4.52 billion $1.41 7.54

UBS Group has higher revenue and earnings than Cullen/Frost Bankers. UBS Group is trading at a lower price-to-earnings ratio than Cullen/Frost Bankers, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Cullen/Frost Bankers has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, UBS Group has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Dividends

Cullen/Frost Bankers pays an annual dividend of $2.84 per share and has a dividend yield of 3.3%. UBS Group does not pay a dividend. Cullen/Frost Bankers pays out 41.2% of its earnings in the form of a dividend. Cullen/Frost Bankers has raised its dividend for 26 consecutive years.

Institutional and Insider Ownership

81.4% of Cullen/Frost Bankers shares are owned by institutional investors. Comparatively, 30.3% of UBS Group shares are owned by institutional investors. 4.8% of Cullen/Frost Bankers shares are owned by company insiders. Comparatively, 1.0% of UBS Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Cullen/Frost Bankers beats UBS Group on 11 of the 17 factors compared between the two stocks.

Cullen/Frost Bankers Company Profile

Cullen/Frost Bankers, Inc. operates as the holding company for Frost Bank that offers commercial and consumer banking services in Texas. It operates in two segments, Banking and Frost Wealth Advisors. The company offers commercial banking services to corporations and other business clients, including financing for industrial and commercial properties, interim construction related to industrial and commercial properties, equipment, inventories and accounts receivables, and acquisitions; commercial leasing; and treasury management services. It also provides consumer banking services, such as checking accounts, savings programs, automated-teller machines (ATMs), overdraft facilities, installment and real estate loans, home equity loans and lines of credit, drive-in and night deposit services, safe deposit facilities, and brokerage services. In addition, the company offers international banking services comprising deposits, loans, letters of credit, foreign collections, funds, and foreign exchange services. Further, it acts as a correspondent for approximately 194 financial institutions; offers trust, investment, agency, and custodial services for individual and corporate clients; provides capital market services that include sales and trading, new issue underwriting, money market trading, advisory, and securities safekeeping and clearance; and supports international business activities. Additionally, the company offers insurance and securities brokerage services; holds securities for investment purposes; and provides loans to qualified borrowers, as well as investment management services to Frost-managed mutual funds, institutions, and individuals. It operates approximately 131 financial centers and 1,200 ATMs. The company serves the energy, manufacturing, services, construction, retail, telecommunications, healthcare, military, and transportation industries. Cullen/Frost Bankers, Inc. was founded in 1868 and is headquartered in San Antonio, Texas.

UBS Group Company Profile

UBS Group AG, together with its subsidiaries, provides financial advice and solutions worldwide. It operates through four divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, and Investment Bank. The Global Wealth Management division offers investment advisory and solutions to private clients, and high and ultra high net worth clients. This segment provides corporate and banking, lending, wealth planning, investment, asset protection, and philanthropy services, as well as family office services. The Personal & Corporate Banking division provides financial products and services to private, corporate, and institutional clients. The Asset Management division offers investment products and services comprising equities, fixed income products, hedge funds, real estate and private markets, indexed and alternative beta strategies, and asset allocation and currency investment strategies; customized multi-asset, advisory, and fiduciary services; multi-manager hedge fund solutions and advisory services; and fund corporate governance and white-labeling services. The Investment Bank division provides advisory, debt and equity capital market, and financing solutions; and market lending services for global wealth management, personal and corporate banking, and asset management businesses serving the corporate, institutional, and wealth management clients. This division also offers cash, derivatives, and financing; foreign exchange, precious metals, rates, and credit; and securities research services. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is headquartered in Zurich, Switzerland.

Receive News & Ratings for Cullen/Frost Bankers Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cullen/Frost Bankers and related companies with MarketBeat.com's FREE daily email newsletter.