Top Financial Stocks by UQS Score
1628 stocks scored · Last updated
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.
Financials Sector Score Overview
Top Financials Stocks: Who Leads and Why
Tradeweb Markets Inc. leads the financial sector with a 80 UQS score. Its quality score of 84 reflects strong ROE-driven profitability, while its moat score of 74 captures deep competitive advantages in its financial niche.
Hamilton Lane Incorporated earns a 76 overall score, with particular strength in valuation (82) suggesting the market hasn't fully priced its earnings power and growth trajectory.
MarketAxess Holdings Inc. scores 75, demonstrating balanced performance across quality (93), growth (38), and risk (100). Its financial stability stands out in a sector prone to cyclical swings.
Royce Micro-Cap Trust, Inc. scores 75 overall with strong returns on equity and a solid moat score, reflecting durable competitive advantages in financial services.
Evercore Inc. scores 74 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 | TW | 80 | 84 | 74 | 76 | 100 | 66 |
| 2 | HLNE | 76 | 100 | 51 | 73 | 78 | 82 |
| 3 | MKTX | 75 | 93 | 65 | 38 | 100 | 88 |
| 4 | RMT | 75 | 69 | 50 | 91 | 91 | 90 |
| 5 | EVR | 74 | 80 | 42 | 89 | 93 | 80 |
| 6 | RNR | 73 | 100 | 44 | 36 | 100 | 100 |
| 7 | PLMR | 73 | 86 | 34 | 100 | 70 | 79 |
| 8 | V | 72 | 85 | 88 | 59 | 64 | 52 |
| 9 | CASH | 70 | 93 | 38 | 51 | 100 | 99 |
| 10 | XAU.TO | 70 | 91 | 27 | 81 | 69 | 100 |
| 11 | MA | 70 | 87 | 83 | 71 | 34 | 55 |
| 12 | ACIC | 70 | 97 | 34 | 60 | 69 | 100 |
| 13 | VINP | 70 | 75 | 35 | 96 | 74 | 100 |
| 14 | YB | 70 | 95 | 35 | 67 | 73 | 100 |
| 15 | XZO | 70 | 94 | 37 | 94 | 68 | 78 |
| 16 | PIPR | 70 | 78 | 27 | 80 | 100 | 85 |
| 17 | PRI | 70 | 92 | 45 | 44 | 91 | 87 |
| 18 | SEIC | 70 | 85 | 48 | 51 | 100 | 75 |
| 19 | SNFCA | 70 | 74 | 16 | 92 | 91 | 100 |
| 20 | CME | 69 | 85 | 82 | 37 | 71 | 63 |
| 21 | NDAQ | 69 | 74 | 74 | 46 | 88 | 64 |
| 22 | AGF-B.TO | 69 | 85 | 25 | 61 | 100 | 96 |
| 23 | OAK-PA | 69 | 91 | 49 | 58 | 47 | 100 |
| 24 | HCI | 68 | 100 | 31 | 49 | 72 | 100 |
| 25 | LBS.TO | 68 | 82 | 19 | 80 | 80 | 100 |
Filter all 1628+ financials stocks in the full directory
Browse All StocksFrequently 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.