Top Financial Stocks by UQS Score

1640 stocks scored · Last updated October 7, 2026

Financial companies operate on fundamentally different economics than every other sector. Banks use leverage as a core business tool, not a risk signal. Insurance companies collect premiums before paying claims. REITs distribute most of their earnings as dividends. Standard financial metrics like ROIC and debt-to-equity ratios are misleading when applied to these businesses without adjustment. The UQS model recognizes this: financial companies are scored with sector-specific thresholds that exclude leverage-based metrics and emphasize return on equity, earnings quality, and valuation relative to book value.

Financials Sector Characteristics

The financials grouping includes banks, insurance companies, asset managers, fintech platforms, and REITs. This is the only sector where the UQS model fundamentally changes its scoring methodology — ROIC is excluded (replaced by ROE), leverage metrics like debt-to-equity and net debt/EBITDA are dropped from the risk pillar, and gross profit/total assets is excluded from quality. These adjustments are necessary because financial companies' 'raw material' is debt itself. A bank with a 15% ROE and well-managed credit risk is a fundamentally different proposition than an industrial company with 15% ROE achieved through financial engineering.

Scoring note: For financials, ROIC and leverage metrics (debt-to-equity, net debt/EBITDA) are automatically excluded from scoring — these metrics are meaningless for companies that use debt as working capital. ROE carries the quality weight instead, and the risk score focuses on solvency ratios and interest coverage.

Financials Sector Score Overview

66

Avg UQS Score

77

Avg Quality

37

Avg Moat

68

Avg Growth

69

Avg Risk

90

Avg Valuation

Top Financials Stocks: Who Leads and Why

#1RMTRoyce Micro-Cap Trust, Inc.75

Royce Micro-Cap Trust, Inc. leads the financial sector with a 75 UQS score. Its quality score of 69 reflects strong ROE-driven profitability, while its moat score of 50 captures deep competitive advantages in its financial niche.

#2YBYuanbao Inc. American Depositary Shares70

Yuanbao Inc. American Depositary Shares earns a 70 overall score, with particular strength in valuation (100) suggesting the market hasn't fully priced its earnings power and growth trajectory.

#3ACICAmerican Coastal Insurance Corporation70

American Coastal Insurance Corporation scores 70, demonstrating balanced performance across quality (99), growth (60), and risk (69). Its financial stability stands out in a sector prone to cyclical swings.

#4PLGOPelagos Insurance Capital Limit68

Pelagos Insurance Capital Limit scores 68 overall with strong returns on equity and a solid moat score, reflecting durable competitive advantages in financial services.

#5ABXAbacus Global Management, Inc.68

Abacus Global Management, Inc. scores 68 overall with strong returns on equity and a solid moat score, reflecting durable competitive advantages in financial services.

Full Financials Ranking: Top 25 Stocks

#	Stock	UQS	Q	M	G	R	V
1	RMTRoyce Micro-Cap Trust, Inc.	75	69	50	91	91	92
2	YBYuanbao Inc. American Depositary Shares	70	95	35	67	73	100
3	ACICAmerican Coastal Insurance Corporation	70	99	34	60	69	98
4	PLGOPelagos Insurance Capital Limit	68	75	50	73	49	100
5	ABXAbacus Global Management, Inc.	68	73	25	100	64	91
6	XAU.TOGoldmoney Inc.	67	91	27	63	69	100
7	SBC.TOBrompton Split Banc Corp.	67	75	20	80	83	100
8	SWZTotal Return Securities Fund	67	80	50	43	73	100
9	LIENChicago Atlantic BDC, Inc.	67	64	33	89	64	100
10	SORSource Capital, Inc.	65	64	28	66	100	90
11	DLCG.TODominion Lending Centres Inc.	65	78	40	77	63	69
12	STCK.TOStack Capital Group Inc.	65	75	24	80	73	86
13	TSU.TOTrisura Group Ltd.	65	54	34	70	100	90
14	NRDSNerdWallet, Inc.	64	63	24	68	94	100
15	BK.TOCanadian Banc Corp.	64	84	30	57	83	80
16	OPFIOppFi Inc.	64	83	38	78	22	100
17	TRUTransUnion	64	70	60	65	45	79
18	PLMRPalomar Holdings, Inc.	64	86	34	77	70	54
19	APOSApollo Global Management, Inc.	64	64	57	49	59	99
20	MRXMarex Group Limited	64	79	44	66	37	97
21	ESQEsquire Financial Holdings, Inc.	64	88	32	80	41	79
22	SEICSEI Investments Company	64	85	48	25	100	71
23	ALIZFAllianz SE	64	66	43	66	64	92
24	ISDPGIM High Yield Bond Fund, Inc.	64	84	50	39	66	84
25	KINSKingstone Companies, Inc.	64	77	27	73	67	88

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Frequently Asked Questions About Financials Stocks

Why are leverage metrics excluded for financial companies?

Banks, insurance companies, and REITs use debt as a primary business tool — a bank's deposits are technically debt, and its ability to leverage those deposits into loans is the core of its business model. A bank with a 10:1 debt-to-equity ratio isn't 'overleveraged' in the way an industrial company would be — that's how banking works. Scoring financials on standard leverage metrics would penalize them for doing their job well. Instead, the UQS model evaluates financial company risk through ROE consistency, interest coverage, and solvency ratios.

How are REITs scored differently from other stocks?

REITs are classified as financials in the UQS model, which means ROIC and leverage metrics are excluded from their scoring. This is intentional: REITs have structurally different balance sheets (required to distribute 90% of taxable income as dividends) and use mortgage debt as a core operating tool. The most informative UQS scores for REITs are typically quality (via ROE and margins), moat (property type and location advantages), and valuation (price relative to funds from operations).

What drives high UQS scores in the financial sector?

The highest-scoring financial companies combine strong ROE (indicating efficient use of shareholder capital) with wide moats (switching costs, regulatory barriers, scale advantages) and attractive valuations. Banks with dominant deposit franchises, insurance companies with disciplined underwriting, and asset managers with sticky AUM bases tend to score well. Growth can also differentiate — fintech companies with expanding market share often score higher on growth than traditional banks.