Contrasting ERSTE GRP BK A/S (OTCMKTS:EBKDY) and KB Financial Group (OTCMKTS:KB)

ERSTE GRP BK A/S (OTCMKTS:EBKDY) and KB Financial Group (NYSE:KB) are both large-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.

Dividends

ERSTE GRP BK A/S pays an annual dividend of $0.76 per share and has a dividend yield of 4.6%. KB Financial Group pays an annual dividend of $1.37 per share and has a dividend yield of 4.4%. KB Financial Group pays out 19.6% of its earnings in the form of a dividend. KB Financial Group has increased its dividend for 3 consecutive years.

Profitability

This table compares ERSTE GRP BK A/S and KB Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ERSTE GRP BK A/S 15.25% 9.39% 0.74%
KB Financial Group 17.98% 8.36% 0.62%

Analyst Recommendations

This is a breakdown of current ratings and target prices for ERSTE GRP BK A/S and KB Financial Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ERSTE GRP BK A/S 0 0 0 0 N/A
KB Financial Group 0 1 3 0 2.75

KB Financial Group has a consensus price target of $61.00, indicating a potential upside of 95.26%. Given KB Financial Group’s higher probable upside, analysts plainly believe KB Financial Group is more favorable than ERSTE GRP BK A/S.

Institutional and Insider Ownership

0.3% of ERSTE GRP BK A/S shares are owned by institutional investors. Comparatively, 6.6% of KB Financial Group shares are owned by institutional investors. 69.0% of KB Financial Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares ERSTE GRP BK A/S and KB Financial Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ERSTE GRP BK A/S $10.73 billion 1.32 $2.12 billion N/A N/A
KB Financial Group $14.54 billion 0.85 $2.75 billion $6.99 4.47

KB Financial Group has higher revenue and earnings than ERSTE GRP BK A/S.

Risk and Volatility

ERSTE GRP BK A/S has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, KB Financial Group has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Summary

KB Financial Group beats ERSTE GRP BK A/S on 8 of the 15 factors compared between the two stocks.

About ERSTE GRP BK A/S

Erste Group Bank AG provides a range of banking and other financial services to the retail and corporate customers in Austria, Central and Eastern Europe, and internationally. The company operates through Retail, Corporates, Group Markets, Asset/Liability Management and Local Corporate Center, Savings Banks, Group Corporate Center, and Intragroup Elimination segments. It offers savings and current accounts, mortgage and consumer loans, working capital finance, accounts receivable purchasing, structured trade finance, and supply chain finance services; loan syndication services; letters of credit, guarantees, investment finance, acquisition and leveraged finance, commercial real estate finance, buyer's credit, and revolving export credit lines; liquidity management; and hedging and documentary collection services. The company also provides private banking, asset management, investment banking, securities and derivatives trading, portfolio management, project finance, foreign trade financing, corporate finance, capital market and money market, foreign exchange trading, and leasing and factoring services; phone, online, and mobile banking services; and leasing, insurance, investment, and building society products, as well as credit cards. In addition, it offers real estate development and lending; advisory services related to acquisition, divestment, and merger, as well as risk management; analysis services for stock, bond, and commodity markets; and custody and brokerage services. The company operates through 2,565 branches in seven countries. Erste Group Bank AG was founded in 1819 and is headquartered in Vienna, Austria.

About KB Financial Group

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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