KB Financial Group (NYSE: KB) and Farmers Capital Bank (NASDAQ:FFKT) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.
Farmers Capital Bank pays an annual dividend of $0.50 per share and has a dividend yield of 1.3%. KB Financial Group does not pay a dividend. Farmers Capital Bank pays out 32.1% of its earnings in the form of a dividend.
5.9% of KB Financial Group shares are held by institutional investors. Comparatively, 51.1% of Farmers Capital Bank shares are held by institutional investors. 69.0% of KB Financial Group shares are held by insiders. Comparatively, 3.1% of Farmers Capital Bank shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares KB Financial Group and Farmers Capital Bank’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|KB Financial Group||23.89%||9.95%||0.80%|
|Farmers Capital Bank||14.53%||9.27%||1.07%|
Earnings & Valuation
This table compares KB Financial Group and Farmers Capital Bank’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|KB Financial Group||$9.97 billion||2.39||$1.78 billion||$6.44||9.22|
|Farmers Capital Bank||$80.45 million||3.50||$11.69 million||$1.56||23.97|
KB Financial Group has higher revenue and earnings than Farmers Capital Bank. KB Financial Group is trading at a lower price-to-earnings ratio than Farmers Capital Bank, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for KB Financial Group and Farmers Capital Bank, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|KB Financial Group||0||0||2||0||3.00|
|Farmers Capital Bank||0||1||0||0||2.00|
Farmers Capital Bank has a consensus price target of $40.00, indicating a potential upside of 6.95%. Given Farmers Capital Bank’s higher possible upside, analysts plainly believe Farmers Capital Bank is more favorable than KB Financial Group.
Volatility & Risk
KB Financial Group has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Farmers Capital Bank has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.
KB Financial Group beats Farmers Capital Bank on 10 of the 16 factors compared between the two stocks.
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.
About Farmers Capital Bank
Farmers Capital Bank Corporation is a bank holding company headquartered in Frankfort, Kentucky. Their bank affiliate United Bank & Capital Trust Company operates 34 banking locations in 21 communities throughout Central and Northern Kentucky.
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