Analyzing KBC Group (OTCMKTS:KBCSY) and DNB Bank ASA (OTCMKTS:DNBBY)

KBC Group (OTCMKTS:KBCSYGet Rating) and DNB Bank ASA (OTCMKTS:DNBBYGet Rating) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
KBC Group 24.42% 10.88% 0.71%
DNB Bank ASA 39.63% 10.10% 0.82%

Dividends

KBC Group pays an annual dividend of $5.44 per share and has a dividend yield of 20.5%. DNB Bank ASA pays an annual dividend of $1.62 per share and has a dividend yield of 8.2%. DNB Bank ASA pays out 89.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of recent ratings for KBC Group and DNB Bank ASA, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KBC Group 2 8 3 0 2.08
DNB Bank ASA 1 4 5 0 2.40

KBC Group presently has a consensus price target of $72.48, suggesting a potential upside of 172.89%. DNB Bank ASA has a consensus price target of $201.67, suggesting a potential upside of 916.72%. Given DNB Bank ASA’s stronger consensus rating and higher probable upside, analysts clearly believe DNB Bank ASA is more favorable than KBC Group.

Volatility & Risk

KBC Group has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, DNB Bank ASA has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Valuation and Earnings

This table compares KBC Group and DNB Bank ASA’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KBC Group $10.98 billion 2.02 $3.09 billion N/A N/A
DNB Bank ASA $7.12 billion 4.32 $2.95 billion $1.82 10.90

KBC Group has higher revenue and earnings than DNB Bank ASA.

Institutional & Insider Ownership

0.1% of DNB Bank ASA shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

DNB Bank ASA beats KBC Group on 9 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 DNB Bank ASA

(Get Rating)

DNB Bank ASA provides financial services for retail and corporate customers in Norway and internationally. The company offers personal banking products and services, including savings and investment products; loans, such as home mortgages, and car and consumer loans; pet, home and property, travel, and personal insurance products, as well as insurance products for vehicles; retirement savings products; foreign exchange and treasury activities; and Internet and mobile banking services, as well as cards. It also provides business banking products and services comprising savings and investment products consisting of savings accounts, fixed rate deposits, exchange traded products, bonds and commercial papers, asset management, and equity services; financing, such as installment loans, overdraft facility, bank guarantees, leasing, factoring, and trade and export financing services; transaction banking services; research, commodities, bonds and commercial papers, corporate finance, debt capital market, equities, foreign exchange and interest rates, and securities services; and Internet services, including online equity trading, online FX trading, e-confirmation, equities execution, and investor and margin accounts, as well as pension services. In addition, the company provides investment banking services, such as mergers and acquisition, and equity and debt capital market services; foreign exchange, interest rates, equities, commodities, fixed income, research, private equity, and securities services; and corporate banking services. Further, it offers private banking services. The company offers its products and services to various sectors, including energy; financial institutions; healthcare; manufacturing; packaging and forest products; seafood; shipping, offshore, and logistics; and telecom, media, and technology. DNB Bank ASA was founded in 1822 and is headquartered in Oslo, Norway.

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