Analyzing DNB Bank ASA (OTCMKTS:DNBBY) and KB Financial Group (NYSE:KB)

DNB Bank ASA (OTCMKTS:DNBBYGet Free Report) and KB Financial Group (NYSE:KBGet Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Dividends

DNB Bank ASA pays an annual dividend of $0.97 per share and has a dividend yield of 4.9%. KB Financial Group pays an annual dividend of $3.74 per share and has a dividend yield of 7.9%. DNB Bank ASA pays out 41.3% of its earnings in the form of a dividend. KB Financial Group pays out 42.4% 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.

Risk and Volatility

DNB Bank ASA has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, KB Financial Group has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for DNB Bank ASA and KB Financial Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DNB Bank ASA 0 0 0 0 N/A
KB Financial Group 0 0 0 0 N/A

Earnings & Valuation

This table compares DNB Bank ASA and KB Financial Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DNB Bank ASA $17.13 billion N/A $3.62 billion $2.35 8.39
KB Financial Group $26.44 billion 0.72 $3.71 billion $8.82 5.35

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

Institutional & Insider Ownership

11.5% of KB Financial Group shares are owned by institutional investors. 69.0% of KB Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
DNB Bank ASA 21.11% 14.54% 1.06%
KB Financial Group 12.94% 7.72% 0.63%

About DNB Bank ASA

(Get Free Report)

DNB Bank ASA provides financial services for individual and business customers in Norway and internationally. The company offers savings, current, and pension accounts; fixed rate and security deposits; home and cabin mortgages, car and consumer loans, business loans, and refinancing; car, house, home contents, travel, personal, and non-life insurance product; payment services; and online and mobile banking services, as well as cards. It also provides overdraft facilities; leasing services; factoring, supply chain, and receivable purchase financing services; bank guarantee, secure trading, documentary collection, and letter of credit services; investment banking services, such as mergers and acquisition, equity and debt capital market, shares and securities, mutual funds and trading, and bonds and commodities; and private financing, as well as equity trading, foreign exchange, interest rates, and risk advisory services. In addition, the company offers treasury management, working capital, trade finance, auto lease and equipment financing, and corporate finance services, as well as act as an estate agents. DNB Bank ASA was founded in 1822 and is headquartered in Oslo, Norway.

About KB Financial Group

(Get Free Report)

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.

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