Farmers Capital Bank (NASDAQ: FFKT) and KB Financial Group (NYSE:KB) are both financials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.
Institutional and Insider Ownership
51.1% of Farmers Capital Bank shares are owned by institutional investors. Comparatively, 5.9% of KB Financial Group shares are owned by institutional investors. 3.1% of Farmers Capital Bank shares are owned by insiders. Comparatively, 69.0% of KB Financial Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Farmers Capital Bank has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, KB Financial Group has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.
Farmers Capital Bank pays an annual dividend of $0.50 per share and has a dividend yield of 1.4%. KB Financial Group does not pay a dividend. Farmers Capital Bank pays out 32.1% of its earnings in the form of a dividend.
This table compares Farmers Capital Bank and KB Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Farmers Capital Bank||14.53%||9.27%||1.07%|
|KB Financial Group||23.89%||9.95%||0.80%|
This is a breakdown of current recommendations for Farmers Capital Bank and KB Financial Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Farmers Capital Bank||0||1||0||0||2.00|
|KB Financial Group||0||0||2||0||3.00|
Farmers Capital Bank presently has a consensus price target of $40.00, suggesting a potential upside of 8.70%. Given Farmers Capital Bank’s higher probable upside, equities research analysts plainly believe Farmers Capital Bank is more favorable than KB Financial Group.
Earnings & Valuation
This table compares Farmers Capital Bank and KB Financial Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Farmers Capital Bank||$80.45 million||3.44||$11.69 million||$1.56||23.59|
|KB Financial Group||$9.97 billion||2.25||$1.78 billion||$6.44||8.70|
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.
KB Financial Group beats Farmers Capital Bank on 10 of the 16 factors compared between the two stocks.
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.
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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