Itau Corpbanca (NYSE:ITCB) and KB Financial Group (NYSE:KB) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.

Volatility & Risk

Itau Corpbanca has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, KB Financial Group has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.

Institutional & Insider Ownership

0.6% of Itau Corpbanca shares are held by institutional investors. Comparatively, 5.8% of KB Financial Group shares are held by institutional investors. 69.0% of KB Financial Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Itau Corpbanca and KB Financial Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Itau Corpbanca 0 0 1 0 3.00
KB Financial Group 0 1 0 0 2.00

KB Financial Group has a consensus target price of $61.00, suggesting a potential upside of 31.38%. Given KB Financial Group’s higher possible upside, analysts plainly believe KB Financial Group is more favorable than Itau Corpbanca.

Dividends

Itau Corpbanca pays an annual dividend of $0.09 per share and has a dividend yield of 0.6%. KB Financial Group pays an annual dividend of $1.47 per share and has a dividend yield of 3.2%. KB Financial Group pays out 19.8% of its earnings in the form of a dividend. KB Financial Group has raised its dividend for 2 consecutive years. KB Financial Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Itau Corpbanca 3.81% 2.57% 0.31%
KB Financial Group 22.13% 9.81% 0.75%

Earnings and Valuation

This table compares Itau Corpbanca and KB Financial Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Itau Corpbanca $2.86 billion 1.14 $101.73 million N/A N/A
KB Financial Group $13.29 billion 1.40 $3.10 billion $7.43 6.25

KB Financial Group has higher revenue and earnings than Itau Corpbanca.

Summary

KB Financial Group beats Itau Corpbanca on 12 of the 16 factors compared between the two stocks.

About Itau Corpbanca

Itaú CorpBanca provides wholesale and retail banking services. The company offers checking and savings accounts, as well as accepts demand and time deposits; and provides commercial loans, mortgage loans, and consumer loans. It also offers financial advisory, mutual fund management, insurance brokerage, and securities brokerage services; trust portfolio management services, including investment trust management, administration, security, real estate trusts, and fund administration; court and out-of-court collections services for loans; and Internet and mobile banking services. The company has operations in Chile, Colombia, and Panama, as well as has a branch in New York and representative offices in Madrid and Peru. Itaú CorpBanca was founded in 1871 and is headquartered in Santiago, Chile.

About KB Financial Group

KB Financial Group Inc., a financial holding company, provides a range of banking and related financial services to consumers and corporations in South Korea and internationally. It operates through Corporate Banking, Retail Banking, Other Banking Services, Securities Business, Non-life Insurance Business, Credit Card Business, and Life Insurance Business segments. The company offers deposit and credit products and services, and other related financial services to large, small, medium-sized enterprises and SOHOs, and individuals and households; and engages in trading in securities and derivatives, funding, and other supporting activities. It also provides investment banking, brokerage, and other supporting services; property and life insurance; and credit sale, cash service, and card loan services. In addition, the company offers foreign exchange transaction; financial investment; credit card and installment finance; security investment trust management and advisory; financial leasing; real estate trust management; capital investment; collection of receivables or credit investigation; software advisory, development, and supply; investment advisory and securities dealing; claim; management; asset-backed securitization; investment trust; trust asset management; and real estate services. KB Financial Group Inc. was founded in 2008 and is headquartered in Seoul, South Korea.

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