Financial Contrast: KBC Group (OTCMKTS:KBCSY) and Bankinter (OTCMKTS:BKNIY)

KBC Group (OTCMKTS:KBCSY) and Bankinter (OTCMKTS:BKNIY) are both large-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations for KBC Group and Bankinter, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KBC Group	1	4	1	0	2.00
Bankinter	1	3	1	0	2.00

Dividends

KBC Group pays an annual dividend of $3.19 per share and has a dividend yield of 5.0%. Bankinter pays an annual dividend of $0.33 per share and has a dividend yield of 2.0%. KBC Group pays out 63.3% of its earnings in the form of a dividend. Bankinter pays out 23.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares KBC Group and Bankinter’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KBC Group	14.98%	13.51%	0.93%
Bankinter	23.50%	17.69%	0.86%

Valuation and Earnings

This table compares KBC Group and Bankinter”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KBC Group	$26.56 billion	2.02	$4.04 billion	$5.04	12.76
Bankinter	$5.27 billion	2.75	$1.23 billion	$1.40	11.54

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

Volatility & Risk

KBC Group has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, Bankinter has a beta of -0.17, indicating that its share price is 117% less volatile than the S&P 500.

Summary

KBC Group beats Bankinter on 7 of the 11 factors compared between the two stocks.

About KBC Group

KBC Group NV, together with its subsidiaries, provides integrated bank-insurance services primarily for retail, private banking, small and medium sized enterprises, and mid-cap clients. The company offers demand deposits and savings accounts; home and mortgage loans; consumer finance and SME funding services; credit, investment fund and asset management, and life and non-life insurance; and cash management, payments, trade finance, lease, money market, capital market products, and stockbroking services. It also provides digital and mobile banking services. The company was formerly known as KBC Bank and Insurance Holding Company NV and changed its name to KBC Group NV in March 2005. KBC Group NV was incorporated in 1935 and is headquartered in Brussels, Belgium.

About Bankinter

Bankinter, S.A. provides various banking products and services to individuals and corporate customers, and small- and medium-sized enterprises in Spain. It offers payroll, pension, business, salary, non-salary, youth salary, current, currency, professional, basic, and management accounts; deposit products; and mortgages and loan products, as well as financing services. The company also provides saving and investment products, including profiled funds, sustainable investment funds, other managers funds, pension funds, and themed funds, as well as funds for beginners; regular investment plans; and advisory, customized investment, wealth management, and alternative investment products and services. In addition, it offers accident, home, life, funeral, health, mortgage payment protection, property, personal, and motor insurance products, as well as business insurance products. Further, the company provides various services, such as estate administration, switch, asset management, accounts management, and transfer services, as well as real estate and brokerage services. Additionally, it offers retail, personal, private, commercial, and corporate banking products, as well as remote banking services. The company was formerly known as Banco Intercontinental Español, S.A. and changed its name to Bankinter, S.A. in July 1990. Bankinter, S.A. was incorporated in 1965 and is based in Madrid, Spain.