Head-to-head review: KBC Group (OTCMKTS: KBCSY) and DNB Bank ASA (OTCMKTS: DNBBY)


KBC Group (OTCMKTS: KBCSYGet a rating) and DNB Bank ASA (OTCMKTS: DNBBYGet a rating) are both large-cap financial companies, but which is the superior investment? We’ll compare the two companies based on earnings strength, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Profitability

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

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%

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of KBC Group and DNB Bank ASA.

Gross revenue Price/sales ratio Net revenue 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 revenues and profits than DNB Bank ASA.

Volatility and risk

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

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 profits in the form of a dividend, suggesting that it may not have enough profits to cover its dividend payment in the future.

Insider and Institutional Ownership

0.1% of DNB Bank ASA shares are held by institutional investors. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of the current ratings and target prices for KBC Group and DNB Bank ASA, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
KBC Group 2 8 3 0 2.08
DNB Bank ASA 1 4 5 0 2.40

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

Summary

DNB Bank ASA beats KBC Group on 9 of the 14 factors compared between the two stocks.

About KBC Group

(Get a rating)

KBC Group NV, together with its subsidiaries, provides integrated bancassurance services primarily for retail, private banking, small and medium-sized enterprises and mid-cap clients. The company offers demand deposits and savings accounts; real estate and mortgage loans; consumer credit and SME financing services; credit, investment funds and asset management, and life and non-life insurance; and cash management, payments, trade finance, leasing, money market, capital market products and brokerage services. It also provides internet and mobile banking services. As of December 31, 2021, it operated 439 bank branches and 310 insurance branches 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 its customers through agents, brokers and various electronic channels. The company was previously 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 a rating)

DNB Bank ASA provides financial services to individuals and businesses in Norway and internationally. The Company offers personal banking products and services, including savings and investment products; loans, such as home loans and automobile and consumer loans; pet, home and property, travel and personal insurance products, as well as vehicle insurance products; retirement savings products; foreign exchange and treasury activities; and internet and mobile banking, as well as cards. It also provides corporate banking products and services comprising savings and investment products consisting of savings accounts, fixed rate deposits, exchange-traded products, bonds and commercial paper, management equity assets and services; financing, such as installment loans, overdraft facilities, bank guarantees, leasing, factoring, and trade and export finance services; transaction banking services; research, commodities, bonds and commercial paper, corporate finance, debt capital market, equities, foreign exchange and interest rates, and securities services; and Internet services, including online stock trading, online currency trading, electronic confirmation, stock execution, and investor and margin accounts, and retirement services. In addition, the Company provides investment banking services, such as mergers and acquisitions, and equity and debt capital markets services; foreign exchange, interest rate, equity, commodity, fixed income, research, private equity and securities services; and business banking. In addition, it offers private banking services. The company offers its products and services to various sectors, including energy; financial institutions; Health care; manufacturing; packaging and forest products; Seafood; shipping, offshore and logistics; and telecommunications, media and technology. DNB Bank ASA was founded in 1822 and is headquartered in Oslo, Norway.



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