Analyzing KBC Group (OTCMKTS:KBCSY) & VersaBank (NASDAQ:VBNK)

KBC Group (OTCMKTS:KBCSYGet Rating) and VersaBank (NASDAQ:VBNKGet Rating) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Dividends

KBC Group pays an annual dividend of $5.44 per share and has a dividend yield of 20.6%. VersaBank pays an annual dividend of $0.08 per share and has a dividend yield of 1.1%. VersaBank pays out 12.7% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares KBC Group and VersaBank’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KBC Group $10.98 billion 2.01 $3.09 billion N/A N/A
VersaBank $75.30 million 2.73 $17.80 million $0.63 11.89

KBC Group has higher revenue and earnings than VersaBank.

Profitability

This table compares KBC Group and VersaBank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KBC Group 21.94% 10.63% 0.70%
VersaBank 19.31% 7.20% 0.92%

Analyst Recommendations

This is a breakdown of current ratings and target prices for KBC Group and VersaBank, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KBC Group 2 8 3 0 2.08
VersaBank 0 0 0 1 4.00

KBC Group currently has a consensus target price of $65.62, indicating a potential upside of 148.46%. Given KBC Group’s higher possible upside, equities analysts clearly believe KBC Group is more favorable than VersaBank.

Institutional and Insider Ownership

27.4% of VersaBank shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

KBC Group beats VersaBank on 8 of the 14 factors compared between the two stocks.

About KBC Group

(Get Rating)

KBC Group NV, together with its subsidiaries, provides integrated bank-insurance services primarily for retail, private banking, small and medium sized enterprises, and mid-cap clients. The company offers demand deposits and savings accounts; home and mortgage loans; consumer finance and SME funding services; credit, investment fund and asset management, and life and non-life insurance; and cash management, payments, trade finance, lease, money market, capital market products, and stockbroking services. It also provides Internet and mobile banking services. As of December 31, 2021, it operated 439 bank branches and 310 insurance agencies in Belgium; 208 bank branches in the Czech Republic; 123 bank branches in Slovakia; 198 bank branches in Hungary; 168 bank branches in Bulgaria; and 12 bank branches in Ireland. KBC Group NV serves customers through agents, brokers, and various electronic channels. The company was formerly known as KBC Bank and Insurance Holding Company NV and changed its name to KBC Group NV in March 2005. KBC Group NV was incorporated in 1935 and is headquartered in Brussels, Belgium.

About VersaBank

(Get Rating)

VersaBank, a schedule I chartered bank, provides various banking products and services in Canada. The company offers deposit products, such as guaranteed investment certificates, registered retirement savings plans, daily interest savings accounts, and tax-free savings accounts, as well as deposit insurance products. It also provides lending services, including point of sale financing that involves purchasing loan and lease receivables from finance companies operating in various industries; and commercial banking services comprising commercial real estate, public sector/infrastructure financing, condominium financing, and residential mortgages. The company was formerly known as Pacific & Western Bank of Canada and changed its name to VersaBank in May 2016. VersaBank was incorporated in 1979 and is headquartered in London, Canada.

Receive News & Ratings for KBC Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for KBC Group and related companies with MarketBeat.com's FREE daily email newsletter.