Head to Head Comparison: National Bank of Canada (NTIOF) & KBC Grp NV/ADR (KBCSY)

National Bank of Canada (OTCMKTS:NTIOF) and KBC Grp NV/ADR (OTCMKTS:KBCSY) are both large-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares National Bank of Canada and KBC Grp NV/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Bank of Canada 20.48% 18.80% 0.87%
KBC Grp NV/ADR 24.35% 12.64% 0.79%

Volatility & Risk

National Bank of Canada has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, KBC Grp NV/ADR has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for National Bank of Canada and KBC Grp NV/ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Bank of Canada 0 1 0 0 2.00
KBC Grp NV/ADR 0 0 0 0 N/A

Insider & Institutional Ownership

0.1% of National Bank of Canada shares are owned by institutional investors. Comparatively, 0.1% of KBC Grp NV/ADR shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares National Bank of Canada and KBC Grp NV/ADR’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Bank of Canada $6.85 billion 2.46 $1.48 billion $4.17 11.96
KBC Grp NV/ADR $11.20 billion 2.89 $2.91 billion $3.41 11.33

KBC Grp NV/ADR has higher revenue and earnings than National Bank of Canada. KBC Grp NV/ADR is trading at a lower price-to-earnings ratio than National Bank of Canada, indicating that it is currently the more affordable of the two stocks.

Dividends

National Bank of Canada pays an annual dividend of $1.90 per share and has a dividend yield of 3.8%. KBC Grp NV/ADR pays an annual dividend of $1.61 per share and has a dividend yield of 4.2%. National Bank of Canada pays out 45.6% of its earnings in the form of a dividend. KBC Grp NV/ADR pays out 47.2% 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.

About National Bank of Canada

National Bank of Canada provides various financial products and services to retail, commercial, corporate, and institutional clients in Canada and internationally. It operates through Personal and Commercial, Wealth Management, Financial Markets, and U.S. Specialty Finance and International segments. The Personal and Commercial segment offers personal banking services, including transaction solutions, mortgage loans and home equity lines of credit, consumer loans, payment solutions, savings options, and tailored investment solutions; various insurance products; and commercial banking services, such as credit, and deposit and investment solutions, as well as international trade, foreign exchange transactions, payroll, cash management, insurance, electronic transactions, and complementary services. The Wealth Management segment provides investment solutions, trust services, banking services, lending services, and other wealth management solutions through internal and third-party distribution networks. The Financial Markets segment offers debt and equity underwriting; bank credit and risk management products and services; advisory services in the areas of mergers and acquisitions, and financing; and investment banking services comprising origination, underwriting, distribution, and liquidity services through secondary market activities, as well as macroeconomic and issuer-focused research services. The U.S. Specialty Finance and International segments provides specialty finance expertise; financial products and services to individuals and businesses in Cambodia; and the activities of targeted investments in certain emerging markets. The company provides its services through a network of 429 branches and 931 banking machines. The company was founded in 1859 and is headquartered in Montreal, Canada.

About KBC Grp NV/ADR

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 primarily in Belgium, Bulgaria, the Czech Republic, Hungary, Ireland, and Slovakia. It accepts deposits; offers loans to individuals, businesses, and public authorities; and provides services, including payments, cash management, trade finance, leasing, corporate finance, and money and capital market products, as well as offers asset management services. KBC Group NV serves customers through a network of approximately 1,521 bank branches, as well as through insurance distribution networks and electronic channels. 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.

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