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

Volatility & Risk

KB Financial Group has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, United Financial Bancorp has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
KB Financial Group 22.83% 9.16% 0.75%
United Financial Bancorp 22.67% 8.94% 0.89%

Dividends

United Financial Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.6%. KB Financial Group does not pay a dividend. United Financial Bancorp pays out 40.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and recommmendations for KB Financial Group and United Financial Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KB Financial Group 0 0 2 0 3.00
United Financial Bancorp 0 1 1 0 2.50

United Financial Bancorp has a consensus price target of $19.00, suggesting a potential upside of 3.83%. Given United Financial Bancorp’s higher possible upside, analysts clearly believe United Financial Bancorp is more favorable than KB Financial Group.

Valuation and Earnings

This table compares KB Financial Group and United Financial 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 $7.03 billion 2.90 $2.55 billion $6.44 7.99
United Financial Bancorp $204.98 million 4.49 $59.31 million $1.18 15.51

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

Institutional and Insider Ownership

5.6% of KB Financial Group shares are owned by institutional investors. Comparatively, 64.7% of United Financial Bancorp shares are owned by institutional investors. 69.0% of KB Financial Group shares are owned by insiders. Comparatively, 3.4% of United Financial Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

KB Financial Group beats United Financial Bancorp on 10 of the 16 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.

United Financial Bancorp Company Profile

United Financial Bancorp, Inc. is a bank holding company. The Company, through its subsidiary United Bank (the Bank) and various subsidiaries, delivers financial services to individuals, families and businesses in Connecticut and Massachusetts, including retail, commercial and consumer banking, as well as financial advisory services. The Company’s operations include the delivery of loan and deposit products to customers. Personal and business banking customers also bank with the Company online through its Website at www.bankatunited.com, as well as its mobile and telephone banking channels. The Company originates commercial loans, commercial real estate loans, residential and commercial construction loans, residential real estate loans collateralized by one- to four-family residences, home equity lines of credit and fixed rate loans and other consumer loans. The principal lending activity of the Bank is to originate loans secured by first mortgages on one- to four-family residences.

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