Critical Comparison: KB Financial Group (KB) vs. United Bankshares (UBSI)
KB Financial Group (NYSE: KB) and United Bankshares (NASDAQ:UBSI) are both mid-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.
This table compares KB Financial Group and United Bankshares’ 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 Bankshares pays an annual dividend of $1.32 per share and has a dividend yield of 3.6%. KB Financial Group does not pay a dividend. United Bankshares pays out 69.5% of its earnings in the form of a dividend.
This is a breakdown of recent recommendations for KB Financial Group and United Bankshares, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|KB Financial Group||0||0||2||0||3.00|
United Bankshares has a consensus target price of $42.50, indicating a potential upside of 15.02%. Given United Bankshares’ higher probable upside, analysts clearly believe United Bankshares is more favorable than KB Financial Group.
Institutional and Insider Ownership
5.6% of KB Financial Group shares are held by institutional investors. Comparatively, 62.3% of United Bankshares shares are held by institutional investors. 69.0% of KB Financial Group shares are held by company insiders. Comparatively, 6.2% of United Bankshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares KB Financial Group and United Bankshares’ 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||2.89||$2.55 billion||$6.44||7.95|
|United Bankshares||$537.56 million||7.21||$199.43 million||$1.90||19.45|
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.
Volatility & Risk
KB Financial Group has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, United Bankshares has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.
KB Financial Group beats United Bankshares on 9 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 Bankshares Company Profile
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.
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