New York Community Bancorp (NYSE: NYCB) and KB Financial Group (NYSE:KB) are both mid-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for New York Community Bancorp and KB Financial Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New York Community Bancorp 2 8 0 0 1.80
KB Financial Group 0 0 2 0 3.00

New York Community Bancorp presently has a consensus price target of $14.03, indicating a potential upside of 19.62%. Given New York Community Bancorp’s higher possible upside, research analysts clearly believe New York Community Bancorp is more favorable than KB Financial Group.

Volatility and Risk

New York Community Bancorp has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, KB Financial Group has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.

Dividends

New York Community Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 5.8%. KB Financial Group does not pay a dividend. New York Community Bancorp pays out 73.9% of its earnings in the form of a dividend.

Insider & Institutional Ownership

57.5% of New York Community Bancorp shares are owned by institutional investors. Comparatively, 5.6% of KB Financial Group shares are owned by institutional investors. 3.1% of New York Community Bancorp shares are owned by insiders. Comparatively, 69.0% of KB Financial Group shares are owned 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.

Earnings & Valuation

This table compares New York Community Bancorp and KB Financial Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
New York Community Bancorp $1.38 billion 4.16 $449.95 million $0.92 12.75
KB Financial Group $6.98 billion 2.58 $2.55 billion $6.44 7.04

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

Profitability

This table compares New York Community Bancorp and KB Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New York Community Bancorp 25.67% 7.46% 0.94%
KB Financial Group 22.83% 9.16% 0.75%

Summary

KB Financial Group beats New York Community Bancorp on 9 of the 16 factors compared between the two stocks.

About New York Community Bancorp

New York Community Bancorp, Inc. is a multi-bank holding company. The Company operates through its subsidiaries, New York Community Bank (the Community Bank) and New York Commercial Bank (the Commercial Bank) (collectively, the Banks). The Company’s operations are divided into two segments: Banking Operations and Residential Mortgage Banking. The Banking Operations segment serves consumers and businesses by offering and servicing a range of loan and deposit products and other financial services. The Residential Mortgage Banking segment originates, aggregates, sells and services one- to four-family mortgage loans. Mortgage loan products consist of agency-conforming, fixed and adjustable-rate loans and, to a lesser extent, jumbo loans, for the purpose of purchasing or refinancing one- to four-family homes. The Community Bank is a chartered savings bank. As of December 31, 2016, the Community Bank had 225 branches operating through seven local divisions.

About KB Financial Group

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.

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