Critical Survey: KB Financial Group (KB) versus Farmers Capital Bank (FFKT)

KB Financial Group (NYSE: KB) and Farmers Capital Bank (NASDAQ:FFKT) are both financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.

Dividends

Farmers Capital Bank pays an annual dividend of $0.50 per share and has a dividend yield of 1.3%. KB Financial Group does not pay a dividend. Farmers Capital Bank pays out 32.1% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares KB Financial Group and Farmers Capital Bank’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KB Financial Group $9.97 billion 2.39 $1.78 billion $7.40 8.02
Farmers Capital Bank $80.45 million 3.51 $11.69 million $1.56 24.10

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

Volatility and Risk

KB Financial Group has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Farmers Capital Bank has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for KB Financial Group and Farmers Capital Bank, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KB Financial Group 0 0 2 0 3.00
Farmers Capital Bank 0 1 0 0 2.00

Farmers Capital Bank has a consensus target price of $40.00, indicating a potential upside of 6.38%. Given Farmers Capital Bank’s higher possible upside, analysts clearly believe Farmers Capital Bank is more favorable than KB Financial Group.

Insider and Institutional Ownership

5.9% of KB Financial Group shares are owned by institutional investors. Comparatively, 51.0% of Farmers Capital Bank shares are owned by institutional investors. 69.0% of KB Financial Group shares are owned by company insiders. Comparatively, 3.1% of Farmers Capital Bank shares are owned by company insiders. 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.

Profitability

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

Net Margins Return on Equity Return on Assets
KB Financial Group 23.89% 9.95% 0.80%
Farmers Capital Bank 14.53% 9.27% 1.07%

Summary

KB Financial Group beats Farmers Capital Bank on 10 of the 16 factors compared between the two stocks.

KB Financial Group Company Profile

KB Financial Group Inc. is a financial holding company in Korea. The Company’s operations include Kookmin Bank, a commercial bank in Korea. The Company operates through six business segments: retail banking operations, corporate banking operations, other banking operations, credit card operations, investment and securities operations, and life insurance operations. The retail banking operations segment consists of retail banking services provided by Kookmin Bank. The corporate banking operations consist of corporate banking services provided by Kookmin Bank. The other banking operations include treasury activities and back office administrative operations. The credit card operations segment consists of credit card activities. The investment and securities operations consist of securities brokerage, investment banking, securities investment and trading and other capital markets services. The life insurance segment consists of life insurance and wealth management services.

Farmers Capital Bank Company Profile

Farmers Capital Bank Corporation is a bank holding company headquartered in Frankfort, Kentucky. Their bank affiliate United Bank & Capital Trust Company operates 34 banking locations in 21 communities throughout Central and Northern Kentucky.

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