Comparing Pathward Financial (NASDAQ:CASH) and KB Financial Group (NYSE:KB)

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

Dividends

Pathward Financial pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. KB Financial Group pays an annual dividend of $2.70 per share and has a dividend yield of 2.3%. Pathward Financial pays out 2.5% of its earnings in the form of a dividend. KB Financial Group pays out 23.2% 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.

Valuation and Earnings

This table compares Pathward Financial and KB Financial Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pathward Financial	$832.16 million	1.93	$185.87 million	$8.14	9.52
KB Financial Group	$23.41 billion	1.74	$4.04 billion	$11.65	9.87

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Pathward Financial and KB Financial Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pathward Financial	0	0	3	0	3.00
KB Financial Group	0	0	2	1	3.33

Pathward Financial presently has a consensus target price of $101.00, indicating a potential upside of 30.32%. Given Pathward Financial’s higher possible upside, research analysts plainly believe Pathward Financial is more favorable than KB Financial Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pathward Financial	21.11%	20.82%	2.40%
KB Financial Group	17.67%	10.11%	0.76%

Institutional & Insider Ownership

92.7% of Pathward Financial shares are owned by institutional investors. Comparatively, 11.5% of KB Financial Group shares are owned by institutional investors. 1.4% of Pathward Financial shares are owned by company insiders. Comparatively, 69.0% of KB Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Pathward Financial has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, KB Financial Group has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Summary

KB Financial Group beats Pathward Financial on 9 of the 17 factors compared between the two stocks.

About Pathward Financial

Pathward Financial, Inc. operates as the bank holding company for Pathward, National Association that provides various banking products and services in the United States. The company operates through three segments: Consumer, Commercial, and Corporate Services/Other. It offers demand deposit accounts, savings accounts, and money market savings accounts. The company also provides commercial finance product comprising term lending, asset-based lending, factoring, lease financing, insurance premium finance, government guaranteed lending, and other commercial finance products; consumer credit products; other consumer financing services; tax services, which includes short-term refund advance loans and short-term electronic return originator advance loans; and warehouse financing services. In addition, it issues prepaid cards; and offers payment solutions, such as acceptance, processing, and settlement of credit card and debit card payments. The company was formerly known as Meta Financial Group, Inc. and changed its name to Pathward Financial, Inc. in July 2022. Pathward Financial, Inc. was founded in 1954 and is based in Sioux Falls, South Dakota.

About KB Financial Group

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.