United Bankshares (NASDAQ: UBSI) and KB Financial Group (NYSE:KB) are both mid-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.

Dividends

United Bankshares pays an annual dividend of $1.32 per share and has a dividend yield of 3.5%. KB Financial Group does not pay a dividend. United Bankshares pays out 69.5% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares United Bankshares and KB Financial Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
United Bankshares $537.56 million 7.31 $199.43 million $1.90 19.71
KB Financial Group $7.03 billion 2.86 $2.55 billion $6.44 7.88

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

Profitability

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

Net Margins Return on Equity Return on Assets
United Bankshares 25.20% 6.42% 1.00%
KB Financial Group 22.83% 9.16% 0.75%

Volatility and Risk

United Bankshares has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, KB Financial Group has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Institutional & Insider Ownership

62.3% of United Bankshares shares are held by institutional investors. Comparatively, 5.6% of KB Financial Group shares are held by institutional investors. 6.2% of United Bankshares shares are held by company insiders. Comparatively, 69.0% of KB Financial Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for United Bankshares and KB Financial Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Bankshares 0 4 0 0 2.00
KB Financial Group 0 0 2 0 3.00

United Bankshares presently has a consensus price target of $42.50, indicating a potential upside of 13.48%. Given United Bankshares’ higher possible upside, equities research analysts plainly believe United Bankshares is more favorable than KB Financial Group.

Summary

KB Financial Group beats United Bankshares on 9 of the 16 factors compared between the two stocks.

About United Bankshares

United Bankshares, Inc. (United) is a bank holding company. The Company operates through community banking segment. United’s Banking Subsidiaries offer a range of commercial and retail banking services and products. United, through its subsidiaries, engages in community banking and offers banking products and services permitted by law and regulation. Included among the banking services offered are the acceptance of deposits in checking, savings, time and money market accounts; the making and servicing of personal, commercial, floor plan and student loans, and the making of construction and real estate loans. Also offered are individual retirement accounts, safe deposit boxes, wire transfers and other standard banking products and services. As part of its lending function, the Banking Subsidiaries offer credit card services. The Company’s loan portfolio consists of commercial, real estate and consumer loans, including credit card and home equity loans.

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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