KB Financial Group (NYSE: KB) and Mizuho Financial Group (NYSE:MFG) are both large-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.
Insider and Institutional Ownership
5.8% of KB Financial Group shares are owned by institutional investors. Comparatively, 0.4% of Mizuho Financial Group shares are owned by institutional investors. 69.0% of KB Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for KB Financial Group and Mizuho Financial Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|KB Financial Group||0||0||1||0||3.00|
|Mizuho Financial Group||0||3||0||0||2.00|
Risk and Volatility
KB Financial Group has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Mizuho Financial Group has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.
Mizuho Financial Group pays an annual dividend of $0.06 per share and has a dividend yield of 1.6%. KB Financial Group does not pay a dividend. Mizuho Financial Group pays out 14.6% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares KB Financial Group and Mizuho Financial Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|KB Financial Group||$13.29 billion||1.75||$2.98 billion||$7.43||7.80|
|Mizuho Financial Group||$30.46 billion||1.54||$5.61 billion||$0.41||9.02|
Mizuho Financial Group has higher revenue and earnings than KB Financial Group. KB Financial Group is trading at a lower price-to-earnings ratio than Mizuho Financial Group, indicating that it is currently the more affordable of the two stocks.
This table compares KB Financial Group and Mizuho Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|KB Financial Group||22.77%||9.89%||0.78%|
|Mizuho Financial Group||16.11%||5.88%||0.27%|
KB Financial Group beats Mizuho Financial Group on 11 of the 15 factors compared between the two stocks.
About KB Financial Group
KB Financial Group Inc., a financial holding company, provides various banking and related financial services to individuals and corporations in South Korea and internationally. It operates through six segments: Retail Banking Operations, Corporate Banking Operations, Other Banking Operations, Credit Card Operations, Investment and Securities Operations, and Life Insurance Operations. The company offers deposit products, including demand deposits, time deposits, savings deposits, certificates of deposit, foreign currency deposits; and loans, such as mortgages and home equity, other consumer loans, working capital and facilities loans, as well as credit cards. It also provides debt and equity securities investment and trading, derivatives trading, asset securitizations, and call loans; securities brokerage services; foreign exchange, import and export-related, offshore lending, syndicated loans, and foreign currency securities investment services; trustee and custodian services; trust account management services; management of the national housing fund; and bancassurance, insurance, and consumer finance services. In addition, the company offers investment banking services consisting of project finance and financial advisory services; structured finance; and financing for mergers and acquisitions. Further, it provides investment advisory services; real estate trust management; financial leasing services; and life insurance and wealth management products, as well as Internet and phone banking services, as well as offers non-life insurance products and services. As of December 31, 2016, the company operated a network of 1,130 branches and sub-branches in Korea. KB Financial Group Inc. was founded in 2008 and is headquartered in Seoul, South Korea.
About Mizuho Financial Group
Mizuho Financial Group, Inc. engages in banking, trust banking, securities, and other businesses related to financial services in Japan, the Americas, Europe, and Asia/Oceania. It operates through five segments: Retail & Business Banking Company, Corporate & Institutional Company, Global Corporate Company, Global Markets Company, and Asset Management Company. The company provides deposits; syndicated, housing, and card loans; business matching services; and advisory services related to overseas expansions, and mergers and acquisitions-related services. It also offers consulting services, including asset management and asset succession; payroll services; and sells lottery tickets issued by prefectures and ordinance-designated cities. In addition, it offers financial solutions, such as bonds, mergers and acquisitions advisory, etc. for corporate customers to meet their needs in fund-raising, investment, management, and financial strategies; solutions based on their capital management, business strategy, and financial strategy; solutions related to real estate; advisory services and solutions, such as advice on financial strategy and proposals on various investment products to financial institutions; and financial services that include funding support and public bonds underwriting. Further, the company offers sales and trading services to meet risk hedging and investment needs; investment products for individual customers; and consulting services for institutional investors. Additionally, the company provides products and services related to trust, securitization and structured finance, pension, and stock transfers; securities services; and research, private banking, information technology-related, telephone, and Internet banking services. As of December 31, 2017, its branch network included 466 Mizuho Bank, 57 Mizuho Trust and Banking, and 273 Mizuho Securities; and 6,900 ATMs in Japan. The company was founded in 2003 and is headquartered in Tokyo, Japan.
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