KB Financial Group (NYSE: KB) and First BanCorp. (NYSE:FBP) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitabiliy, institutional ownership, analyst recommendations, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for KB Financial Group and First BanCorp., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KB Financial Group 0 0 3 0 3.00
First BanCorp. 0 1 1 0 2.50

First BanCorp. has a consensus target price of $7.25, indicating a potential upside of 25.43%. Given First BanCorp.’s higher probable upside, analysts plainly believe First BanCorp. is more favorable than KB Financial Group.

Valuation & Earnings

This table compares KB Financial Group and First BanCorp.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
KB Financial Group $6.43 billion 3.05 $2.19 billion $5.51 8.98
First BanCorp. $470.43 million 2.62 $91.84 million $0.43 13.44

KB Financial Group has higher revenue and earnings than First BanCorp.. KB Financial Group is trading at a lower price-to-earnings ratio than First BanCorp., indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

KB Financial Group has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, First BanCorp. has a beta of 2.03, indicating that its share price is 103% more volatile than the S&P 500.

Profitability

This table compares KB Financial Group and First BanCorp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KB Financial Group 20.83% 7.95% 0.67%
First BanCorp. 14.82% 5.31% 0.77%

Insider & Institutional Ownership

6.3% of KB Financial Group shares are owned by institutional investors. Comparatively, 85.3% of First BanCorp. shares are owned by institutional investors. 69.0% of KB Financial Group shares are owned by insiders. Comparatively, 21.1% of First BanCorp. shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

KB Financial Group beats First BanCorp. on 9 of the 14 factors compared between the two stocks.

KB Financial Group Company Profile

KB Financial Group Inc. is a financial holding company in Korea. The Company’s operations include Kookmin Bank, a commercial bank in Korea. The Company operates through six business segments: retail banking operations, corporate banking operations, other banking operations, credit card operations, investment and securities operations, and life insurance operations. The retail banking operations segment consists of retail banking services provided by Kookmin Bank. The corporate banking operations consist of corporate banking services provided by Kookmin Bank. The other banking operations include treasury activities and back office administrative operations. The credit card operations segment consists of credit card activities. The investment and securities operations consist of securities brokerage, investment banking, securities investment and trading and other capital markets services. The life insurance segment consists of life insurance and wealth management services.

First BanCorp. Company Profile

First BanCorp. is a financial holding company. As of December 31, 2016, the Company controlled two subsidiaries: FirstBank Puerto Rico (the Bank or FirstBank) and FirstBank Insurance Agency, Inc. (FirstBank Insurance Agency). It operates in six segments: Commercial and Corporate Banking, which consists of lending and other services; Consumer (Retail) Banking, which consists of consumer lending and deposit-taking activities; Mortgage Banking, which consists of the origination, sale, and servicing of a range of residential mortgage loan products and related hedging activities; Treasury and Investments, which consists of treasury and investment management functions; United States Operations, which consists of all banking activities conducted by FirstBank on the United States mainland, and Virgin Islands Operations, which consists of banking activities conducted by FirstBank in the United States Virgin Islands and British Virgin Islands, including retail and commercial banking services.

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