Financial Review: KB Financial Group (NYSE:KB) vs. First Bank (NASDAQ:FRBA)

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

Insider & Institutional Ownership

11.5% of KB Financial Group shares are owned by institutional investors. Comparatively, 64.9% of First Bank shares are owned by institutional investors. 69.0% of KB Financial Group shares are owned by insiders. Comparatively, 13.1% of First Bank shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

KB Financial Group has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, First Bank has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for KB Financial Group and First Bank, as provided by MarketBeat.

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

First Bank has a consensus price target of $19.67, indicating a potential downside of 0.42%. Given First Bank’s higher possible upside, analysts plainly believe First Bank is more favorable than KB Financial Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KB Financial Group	17.67%	10.11%	0.76%
First Bank	17.73%	9.58%	1.07%

Dividends

KB Financial Group pays an annual dividend of $2.70 per share and has a dividend yield of 2.3%. First Bank pays an annual dividend of $0.48 per share and has a dividend yield of 2.4%. KB Financial Group pays out 23.2% of its earnings in the form of a dividend. First Bank pays out 28.1% 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.

Earnings and Valuation

This table compares KB Financial Group and First 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	$23.41 billion	1.78	$4.04 billion	$11.65	10.09
First Bank	$245.83 million	2.02	$43.66 million	$1.71	11.55

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

About KB Financial Group

KB Financial Group Inc. is a South Korean financial holding company headquartered in Seoul. Established in 2008, it brings together businesses serving individual, corporate and institutional customers, with operations centered primarily in South Korea and an international presence through overseas offices and subsidiaries. Its businesses include commercial and retail banking through KB Kookmin Bank, as well as securities and investment banking, insurance, credit cards, asset management, and consumer and corporate finance.

About First Bank

First Bank is a community bank headquartered in Hamilton, New Jersey, serving individuals, businesses and organizations in New Jersey and eastern Pennsylvania. The bank began operations in 2007 and has expanded its branch network across the region. Its services include business and personal deposit accounts, commercial and consumer loans, and online and mobile banking. First Bank has a particular focus on commercial banking, including lending to businesses and financing commercial real estate.