Analyzing Banco Do Brasil (OTCMKTS:BDORY) & KB Financial Group (NYSE:KB)

KB Financial Group (NYSE:KB) and Banco Do Brasil (OTCMKTS:BDORY) are both large-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Dividends

KB Financial Group pays an annual dividend of $2.04 per share and has a dividend yield of 1.8%. Banco Do Brasil pays an annual dividend of $0.07 per share and has a dividend yield of 1.3%. KB Financial Group pays out 19.2% of its earnings in the form of a dividend. Banco Do Brasil pays out 16.3% 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.

Risk & Volatility

KB Financial Group has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Banco Do Brasil has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KB Financial Group	16.96%	9.79%	0.76%
Banco Do Brasil	3.76%	11.21%	0.84%

Analyst Ratings

This is a summary of current recommendations for KB Financial Group and Banco Do Brasil, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KB Financial Group	0	1	1	0	2.50
Banco Do Brasil	0	3	0	0	2.00

Valuation & Earnings

This table compares KB Financial Group and Banco Do Brasil”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KB Financial Group	$27.12 billion	1.60	$3.44 billion	$10.60	10.98
Banco Do Brasil	$66.83 billion	0.45	$2.45 billion	$0.43	12.16

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

Institutional and Insider Ownership

11.5% of KB Financial Group shares are owned by institutional investors. Comparatively, 0.0% of Banco Do Brasil 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 company will outperform the market over the long term.

Summary

KB Financial Group beats Banco Do Brasil on 10 of the 15 factors compared between the two stocks.

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.

About Banco Do Brasil

Banco do Brasil S.A. provides banking products and services for individuals, companies, and public sectors in Brazil and internationally. The company's Banking segment offers various products and services, including deposits, loans, and services to retail, wholesale, and public sector markets, as well as to micro-entrepreneurs and the low income population. Its Investments segment engages in the intermediation and distribution of debts in the primary and secondary markets; equity investment activities; and rendering of financial services. The company's Fund Management segment is involved in the purchase, sale, and custody of securities, as well as the management of portfolios, and investment funds and clubs. Its Insurance, Pension and Capitalization segment provides life, property, and automobile insurance products, as well as private pension and capitalization plans. The company's Payment Methods segment is involved in the funding, transmission, processing, and settlement of transactions through electronic means. Its Other segment engages in the provision of credit recovery and consortium administration services; development, manufacturing, leasing, and integration of digital electronic systems and equipment, peripherals, programs, inputs, and computing supplies; intermediation of air tickets; and lodging and organization of events. Banco do Brasil S.A. was founded in 1808 and is headquartered in Brasa­lia, Brazil.