Critical Review: Krung Thai Bank Public (OTCMKTS:KGTFY) vs. Canadian Western Bank (OTCMKTS:CBWBF)

Canadian Western Bank (OTCMKTS:CBWBF) and Krung Thai Bank Public (OTCMKTS:KGTFY) are both financial services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Canadian Western Bank and Krung Thai Bank Public, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Western Bank	0	0	2	0	3.00
Krung Thai Bank Public	0	1	1	0	2.50

Canadian Western Bank presently has a consensus price target of $36.57, indicating a potential upside of 88.80%. Given Canadian Western Bank’s stronger consensus rating and higher probable upside, analysts plainly believe Canadian Western Bank is more favorable than Krung Thai Bank Public.

Valuation and Earnings

This table compares Canadian Western Bank and Krung Thai Bank Public’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Western Bank	N/A	N/A	N/A	$2.70	7.17
Krung Thai Bank Public	N/A	N/A	N/A	$50.20	0.24

Krung Thai Bank Public is trading at a lower price-to-earnings ratio than Canadian Western Bank, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

38.6% of Canadian Western Bank shares are held by institutional investors. Comparatively, 0.0% of Krung Thai Bank Public shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Canadian Western Bank pays an annual dividend of $0.78 per share and has a dividend yield of 4.0%. Krung Thai Bank Public pays an annual dividend of $14.11 per share and has a dividend yield of 118.5%. Canadian Western Bank pays out 28.9% of its earnings in the form of a dividend. Krung Thai Bank Public pays out 28.1% 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. Krung Thai Bank Public is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Canadian Western Bank and Krung Thai Bank Public’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Western Bank	N/A	N/A	N/A
Krung Thai Bank Public	N/A	N/A	N/A

Summary

Canadian Western Bank beats Krung Thai Bank Public on 5 of the 8 factors compared between the two stocks.

About Canadian Western Bank

Canadian Western Bank provides personal and business banking products and services in Western Canada. The company offers current, savings, US dollar, chequing, flex notice, organization, business trust, and trust fund investment accounts. It also offers commercial lending and real estate, equipment financing and leasing, aviation financing, and dealership financing products; agriculture lending products and AgriInvest savings account; variable and fixed rate mortgages; line of credit; registered retirement savings plan, consolidation, and vehicle loans; and credit cards. In addition, the company offers cash management services; prestige banking services; life and disability creditor insurance products; and ATM, mobile, and online banking services, as well as cheque order services. Further, it provides investment products comprising guaranteed investment certificates, US dollars investments plans, registered retirement income fund, tax free savings accounts, registered education savings plans, and mutual funds; financial planning services; and specialized financing, wealth management, and trust services. Canadian Western Bank was founded in 1984 and is headquartered in Edmonton, Canada.

About Krung Thai Bank Public

Krung Thai Bank Public Company Limited provides various commercial banking products and services. The company operates through three segments: Retail Banking, Corporate Banking, and Treasury and Investment. It offers various personal banking products and services, including current, savings, and fixed deposit accounts; time and foreign currency deposits; personal and housing loans; debit, travel, cash and top up, and credit cards; investment services; life, health, motor, accident, and non-life insurance products; money transfer, payment and top up, foreign exchange, and overseas education services; and e-banking services. The company also provides SME loans for small and medium businesses; and international business loans. In addition, it offers corporate banking products and services comprising cash management services, such as collection, liquidity management, and transfer and payment services; fixed deposit and current accounts; foreign currency and term deposits; cards; Fx, interest rate, commodity, equity, and credit derivatives; financial advisory, underwriting, and selling agent services for products offered through the equity capital markets; financial advisory services related to merger and acquisition transactions; project finance advisory and feasibility study services, as well as e-banking services; and investment solutions, such as government and corporate bonds, structured notes, and investment units. The company provides its products and services through a network of branches in Thailand and various centers internationally. Krung Thai Bank Public Company Limited was founded in 1966 and is headquartered in Bangkok, Thailand.