MFC Bancorp (NYSE:MFCB) and KB Financial Group (NYSE:KB) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.
Institutional and Insider Ownership
32.1% of MFC Bancorp shares are held by institutional investors. Comparatively, 6.1% of KB Financial Group shares are held by institutional investors. 1.9% of MFC Bancorp shares are held by company insiders. Comparatively, 69.0% of KB Financial Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares MFC Bancorp and KB Financial Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MFC Bancorp||$107.82 million||1.65||-$36.91 million||N/A||N/A|
|KB Financial Group||$14.10 billion||1.12||$2.79 billion||N/A||N/A|
KB Financial Group has higher revenue and earnings than MFC Bancorp.
This is a breakdown of recent ratings and recommmendations for MFC Bancorp and KB Financial Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|KB Financial Group||0||1||3||0||2.75|
KB Financial Group has a consensus target price of $61.00, indicating a potential upside of 53.38%. Given KB Financial Group’s stronger consensus rating and higher possible upside, analysts clearly believe KB Financial Group is more favorable than MFC Bancorp.
Volatility and Risk
MFC Bancorp has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, KB Financial Group has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.
This table compares MFC Bancorp and KB Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|KB Financial Group||20.31%||8.85%||0.66%|
KB Financial Group pays an annual dividend of $1.37 per share and has a dividend yield of 3.4%. MFC Bancorp does not pay a dividend. KB Financial Group has raised its dividend for 3 consecutive years.
KB Financial Group beats MFC Bancorp on 11 of the 14 factors compared between the two stocks.
About MFC Bancorp
MFC Bancorp Ltd., a merchant banking company, provides various financial services for corporations and institutions worldwide. It operates through two segments, Merchant Banking and All Other. The company specializes in markets that are not adequately addressed by traditional sources of supply and finance, with focus on providing solutions for small and medium sized enterprises. It offers bank guarantees, letters of credit, factoring, other financing transactions, proprietary investing and advisory services, and merchant banking products and services. The company also holds various production assets, including a zinc alloy processing facility located in Slovakia; a natural gas power plant located in Alberta, Canada and a hydro-electric power plant located in Africa; a non-ferrous rolling mill in Germany; and a natural gas production and processing facility in Alberta, Canada, as well as a mining sub-lease of the lands upon which the Wabush iron ore mine is situated in Newfoundland and Labrador, Canada. In addition, it has interests in the hydrocarbon interests located in west central Alberta, Canada; and is involved in business activities related to medical equipment, instruments, supplies, and services. The company was formerly known as MFC Industrial Ltd. and changed its name to MFC Bancorp Ltd. in July 2017. MFC Bancorp Ltd. was incorporated in 2017 and is based in Dublin, Ireland.
About KB Financial Group
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.
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