KBC GRP NV/ADR (OTCMKTS:KBCSY) and KB Financial Group (NYSE:KB) are both large-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.
This is a summary of current recommendations and price targets for KBC GRP NV/ADR and KB Financial Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|KBC GRP NV/ADR||0||0||1||0||3.00|
|KB Financial Group||0||1||3||0||2.75|
Valuation & Earnings
This table compares KBC GRP NV/ADR and KB Financial Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|KBC GRP NV/ADR||$11.77 billion||2.60||$3.04 billion||$3.53||10.36|
|KB Financial Group||$14.28 billion||1.11||$2.79 billion||$7.43||5.39|
KBC GRP NV/ADR has higher earnings, but lower revenue than KB Financial Group. KB Financial Group is trading at a lower price-to-earnings ratio than KBC GRP NV/ADR, indicating that it is currently the more affordable of the two stocks.
This table compares KBC GRP NV/ADR and KB Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|KBC GRP NV/ADR||26.90%||13.41%||0.84%|
|KB Financial Group||20.31%||8.85%||0.66%|
Volatility & Risk
KBC GRP NV/ADR has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, KB Financial Group has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.
KBC GRP NV/ADR pays an annual dividend of $0.70 per share and has a dividend yield of 1.9%. KB Financial Group pays an annual dividend of $1.37 per share and has a dividend yield of 3.4%. KBC GRP NV/ADR pays out 19.8% of its earnings in the form of a dividend. KB Financial Group pays out 18.4% 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. KB Financial Group has increased its dividend for 3 consecutive years. KB Financial Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
0.1% of KBC GRP NV/ADR shares are held by institutional investors. Comparatively, 6.1% of KB Financial Group shares are held by institutional investors. 69.0% of KB Financial Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
KB Financial Group beats KBC GRP NV/ADR on 9 of the 17 factors compared between the two stocks.
KBC GRP NV/ADR Company Profile
KBC Group NV, together with its subsidiaries, provides integrated bank-insurance services primarily for retail, private banking, small and medium sized enterprises, and mid-cap clients. It accepts deposits; offers home and mortgage loans; consumer finance and SME funding services; credit, asset management, and life and non-life insurance; payments, and money and debt market services; investment fund solutions; brokerage and corporate finance, foreign trade finance, cash management, leasing, etc.; and other specialized financial products and services. The company also provides telephone, Internet, and mobile banking services. As of December 31, 2018, it operated 585 bank branches and 374 insurance agencies in Belgium; 777 bank branches in Czech Republic, the Slovak Republic, Hungary, and Bulgaria; and 27 bank branches internationally. KBC Group NV serves customers through agents, brokers, multi-agents, and various electronic channels. The company was formerly known as KBC Bank and Insurance Holding Company NV and changed its name to KBC Group NV in March 2005. KBC Group NV was incorporated in 1935 and is headquartered in Brussels, Belgium.
KB Financial Group Company Profile
KB Financial Group Inc., a financial holding company, provides a range of banking and related financial services to consumers and corporations in South Korea and internationally. It operates through Corporate Banking, Retail Banking, Other Banking Services, Securities Business, Non-life Insurance Business, Credit Card Business, and Life Insurance Business segments. The company offers deposit and credit products and services, and other related financial services to large, small, medium-sized enterprises and SOHOs, and individuals and households; and engages in trading in securities and derivatives, funding, and other supporting activities. It also provides investment banking, brokerage, and other supporting services; property and life insurance; and credit sale, cash service, and card loan services. In addition, the company offers foreign exchange transaction; financial investment; credit card and installment finance; security investment trust management and advisory; financial leasing; real estate trust management; capital investment; collection of receivables or credit investigation; software advisory, development, and supply; investment advisory and securities dealing; claim; management; asset-backed securitization; investment trust; trust asset management; and real estate services. KB Financial Group Inc. was founded in 2008 and is headquartered in Seoul, South Korea.
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