Critical Comparison: KB Financial Group (KB) versus Esquire Financial (ESQ)

KB Financial Group (NYSE:KB) and Esquire Financial (NASDAQ:ESQ) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares KB Financial Group and Esquire Financial’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 $13.29 billion 1.27 $3.10 billion $7.43 5.69
Esquire Financial $25.91 million 7.20 $3.64 million N/A N/A

KB Financial Group has higher revenue and earnings than Esquire Financial.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for KB Financial Group and Esquire Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KB Financial Group 0 1 1 0 2.50
Esquire Financial 0 0 1 0 3.00

KB Financial Group currently has a consensus target price of $61.00, suggesting a potential upside of 44.41%. Esquire Financial has a consensus target price of $28.00, suggesting a potential upside of 11.78%. Given KB Financial Group’s higher probable upside, research analysts clearly believe KB Financial Group is more favorable than Esquire Financial.

Dividends

KB Financial Group pays an annual dividend of $1.47 per share and has a dividend yield of 3.5%. Esquire Financial does not pay a dividend. KB Financial Group pays out 19.8% of its earnings in the form of a dividend. KB Financial Group has raised its dividend for 2 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
KB Financial Group 22.13% 9.81% 0.75%
Esquire Financial 19.14% 9.50% 1.43%

Insider and Institutional Ownership

5.8% of KB Financial Group shares are owned by institutional investors. Comparatively, 42.4% of Esquire Financial shares are owned by institutional investors. 69.0% of KB Financial Group shares are owned by insiders. Comparatively, 23.3% of Esquire Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

KB Financial Group has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Esquire Financial has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Summary

KB Financial Group beats Esquire Financial on 9 of the 15 factors compared between the two stocks.

KB Financial Group Company Profile

KB Financial Group Inc., a financial holding company, provides a range of banking and related financial services to consumers and corporations in South Korea and internationally. It operates through Corporate Banking, Retail Banking, Other Banking Services, Securities Business, Non-life Insurance Business, Credit Card Business, and Life Insurance Business segments. The company offers deposit and credit products and services, and other related financial services to large, small, medium-sized enterprises and SOHOs, and individuals and households; and engages in trading in securities and derivatives, funding, and other supporting activities. It also provides investment banking, brokerage, and other supporting services; property and life insurance; and credit sale, cash service, and card loan services. In addition, the company offers foreign exchange transaction; financial investment; credit card and installment finance; security investment trust management and advisory; financial leasing; real estate trust management; capital investment; collection of receivables or credit investigation; software advisory, development, and supply; investment advisory and securities dealing; claim; management; asset-backed securitization; investment trust; trust asset management; and real estate services. KB Financial Group Inc. was founded in 2008 and is headquartered in Seoul, South Korea.

Esquire Financial Company Profile

Esquire Financial Holdings, Inc. operates as the bank holding company for Esquire Bank, National Association that provides commercial banking products and services to law professionals, professional service firms, small to mid-sized businesses, and individuals in the United States. The company offers checking, savings, money market, and time deposits, as well as certificates of deposit. It also provides commercial loans, including short-term financing for inventory, receivables, the purchase of supplies, or other operating needs arising during the normal course of business, as well as loans to its qualified merchant customers; commercial lines of credit; consumer loans consisting of post-settlement consumer and structured settlement loans to plaintiffs and claimants, as well as loans to individuals for debt consolidation, home repairs, home improvement, or consumer purchases; and real estate loans, such as multifamily, 1-4 family residential, commercial real estate, and construction loans. As of December 31, 2017, the company operated a branch in Garden City, New York; and an administrative office in Palm Beach Gardens, Florida. Esquire Financial Holdings, Inc. was founded in 2006 and is headquartered in Jericho, New York.

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