Critical Survey: KB Financial Group (NYSE:KB) versus Raiffeisen Bank International (OTCMKTS:RAIFY)

KB Financial Group (NYSE:KB) and Raiffeisen Bank International (OTCMKTS:RAIFY) 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, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Earnings & Valuation

This table compares KB Financial Group and Raiffeisen Bank International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KB Financial Group	$23.41 billion	1.66	$4.04 billion	$11.14	9.81
Raiffeisen Bank International	$14.76 billion	1.42	$1.55 billion	$0.93	17.14

KB Financial Group has higher revenue and earnings than Raiffeisen Bank International. KB Financial Group is trading at a lower price-to-earnings ratio than Raiffeisen Bank International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares KB Financial Group and Raiffeisen Bank International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KB Financial Group	17.36%	9.99%	0.76%
Raiffeisen Bank International	9.35%	5.13%	0.54%

Volatility & Risk

KB Financial Group has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Raiffeisen Bank International has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.

Institutional and Insider Ownership

11.5% 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 endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

KB Financial Group pays an annual dividend of $2.47 per share and has a dividend yield of 2.3%. Raiffeisen Bank International pays an annual dividend of $0.27 per share and has a dividend yield of 1.7%. KB Financial Group pays out 22.2% of its earnings in the form of a dividend. Raiffeisen Bank International pays out 29.0% 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. KB Financial Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current recommendations and price targets for KB Financial Group and Raiffeisen Bank International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KB Financial Group	0	1	2	0	2.67
Raiffeisen Bank International	0	1	0	1	3.00

Summary

KB Financial Group beats Raiffeisen Bank International on 12 of the 16 factors compared between the two stocks.

About KB Financial Group

KB Financial Group Inc. provides a range of banking and related financial services to consumers and corporations in South Korea, the United States, New Zealand, China, Cambodia, the United Kingdom, Indonesia, and internationally. The company operates through Retail Banking, Corporate Banking, Other Banking Services, Credit Card, Securities, Life Insurance, and Non-Life Insurance segments. It offers loans, deposit products, and other related financial products and services to large, small, medium-sized enterprises, and small office/home office, as well as individuals and households; investment banking, and brokerage and supporting services; life insurance products; non-life insurance products, including fire, maritime, injury, technology, liability, package, title, guarantee, other special type insurances, automobile, long-term nonlife, property damage, injury, driver, savings, illness, nursing, pension, and others; and credit sale, cash service, card loan, and other supporting services. The company also engages in securities and derivatives trading, funding, and other supporting activities. In addition, it offers foreign exchange transaction; financial investment; credit card and installment financing; financial leasing; auto Installment finance; real estate trust management; capital and collective investment; collection of receivables or credit investigation; software advisory, development, and supply; microfinance; investment advisory; claim; management; savings banking; information and communication; e-commerce; and general advisory services. The company was founded in 1963 and is headquartered in Seoul, South Korea.

About Raiffeisen Bank International

Raiffeisen Bank International AG, together with its subsidiaries, offers banking services to corporate, private customers, and institutional customers. The company offers cash management, cross border accounts, electronic banking, payments solutions, sustainable and subsidized financing, leveraged and acquisition financing, project and structured financing, real estate financing, leasing, factoring, trade and export financing, investment banking, investing, hedging, and investor services to its institutional clients and corporate customers in agri food and beverage, automotive, construction and building materials, food and beverage, healthcare and pharmaceuticals, oil and gas, packaging, real estate, retail, technology, telecom, and utilities industries. It also provides retail and private banking services, including deposits, loans, wealth management, and advisory services to retail customers and small and medium-sized enterprises. In addition, the company offers clearing, reporting, settlement, guarantees, letters of credit, fund administration, acceptances, brokerage, asset management, and custody services; and investment banking services, including asset based finance, fund finance and alternatives investments, loan syndication, mergers and acquisitions advisory, and debt and equity capital markets services. It operates through a network of business outlets in Central, Southeastern, and Eastern Europe, as well as Austria, Czech Republic, Hungary, Poland, and Slovakia. Raiffeisen Bank International AG was founded in 1886 and is based in Vienna, Austria.