Head-To-Head Analysis: KBC Group (OTCMKTS:KBCSY) versus Sumitomo Mitsui Trust (OTCMKTS:SUTNY)

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

Analyst Recommendations

This is a breakdown of recent ratings for KBC Group and Sumitomo Mitsui Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KBC Group	1	4	2	0	2.14
Sumitomo Mitsui Trust	0	1	0	0	2.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KBC Group	15.58%	13.42%	0.94%
Sumitomo Mitsui Trust	11.81%	10.45%	0.45%

Dividends

KBC Group pays an annual dividend of $0.66 per share and has a dividend yield of 1.0%. Sumitomo Mitsui Trust pays an annual dividend of $0.10 per share and has a dividend yield of 1.9%. KBC Group pays out 12.5% of its earnings in the form of a dividend. Sumitomo Mitsui Trust pays out 23.3% 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.

Earnings and Valuation

This table compares KBC Group and Sumitomo Mitsui Trust”s gross 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	2.13	$4.04 billion	$5.26	12.88
Sumitomo Mitsui Trust	$19.82 billion	1.51	$1.99 billion	$0.43	12.42

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

Summary

KBC Group beats Sumitomo Mitsui Trust on 11 of the 12 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 Sumitomo Mitsui Trust

Sumitomo Mitsui Trust Holdings, Inc. operates as a trust bank in Japan and internationally. It offers supervising services for management strategies, and financial and human resource management; and general affairs, business process, corporate administration, operational process, risk, and compliance management services; and internal auditing services. The company also provides real estate brokerage, investment management, and investment advisory services for individual and corporate clients; high-level professional consulting services; loan guarantees and payment collection agency services; issuing credit cards; internet banking; securities administration and credit card services; and advanced financial instruments, such as leasing and credit services, and credit card financing services, as well as mortgage loans and managing private equity funds and related advisory services. In addition, it offers back-office services, such as business management and system administration for stock transfer agencies; clerical works, including managing shareholders registry and special accounts; custody and fund administration services; stock transfer agency services; asset management services; and retail total solution, marketing, and fiduciary services, as well as system development and maintenance. Further, the company provides facilities management, clerical work outsourcing, and leasing of buildings; consulting services related to digital transformation, data-analytics, and a range of research and studies; and evaluation of mutual funds, discretionary investment funds, and insurance products, as well as engages in trustee and temporary staffing businesses. The company was formerly known as Chuo Mitsui Trust Holdings, Inc. and changed its name to Sumitomo Mitsui Trust Holdings, Inc. in 2011. Sumitomo Mitsui Trust Holdings, Inc. was founded in 1924 and is headquartered in Tokyo, Japan.