BNP PARIBAS/S (OTCMKTS:BNPQY) and KBC Grp NV/ADR (OTCMKTS:KBCSY) are both large-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.
This table compares BNP PARIBAS/S and KBC Grp NV/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|KBC Grp NV/ADR||24.35%||12.64%||0.79%|
This is a breakdown of current ratings and target prices for BNP PARIBAS/S and KBC Grp NV/ADR, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|KBC Grp NV/ADR||0||0||0||0||N/A|
Institutional and Insider Ownership
0.9% of BNP PARIBAS/S shares are owned by institutional investors. Comparatively, 0.1% of KBC Grp NV/ADR shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility & Risk
BNP PARIBAS/S has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, KBC Grp NV/ADR has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500.
BNP PARIBAS/S pays an annual dividend of $1.49 per share and has a dividend yield of 5.1%. KBC Grp NV/ADR pays an annual dividend of $1.61 per share and has a dividend yield of 4.3%. BNP PARIBAS/S pays out 38.2% of its earnings in the form of a dividend. KBC Grp NV/ADR pays out 47.2% 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. BNP PARIBAS/S is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares BNP PARIBAS/S and KBC Grp NV/ADR’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BNP PARIBAS/S||$55.61 billion||1.30||$8.77 billion||$3.90||7.45|
|KBC Grp NV/ADR||$11.20 billion||2.77||$2.91 billion||$3.41||10.88|
BNP PARIBAS/S has higher revenue and earnings than KBC Grp NV/ADR. BNP PARIBAS/S is trading at a lower price-to-earnings ratio than KBC Grp NV/ADR, indicating that it is currently the more affordable of the two stocks.
BNP PARIBAS/S beats KBC Grp NV/ADR on 8 of the 13 factors compared between the two stocks.
BNP PARIBAS/S Company Profile
BNP Paribas SA provides a range of banking and financial services in France and internationally. The company operates through two divisions, Retail Banking and Services; and Corporate and Institutional Banking. It offers long-term corporate vehicle leasing, and rental and other financing solutions; and digital banking and investment services, cash management, and factoring services to corporate clients, as well as wealth management services. The company also provides credit solutions for individuals under the Cetelem, Cofinoga, and Findomestic brand names; savings and protection solutions, including insuring individuals and their personal projects and assets; and asset management, private banking, and real estate services. In addition, it offers global market services, including investment, hedging, financing, and research across asset classes; security services comprising clearing, custody, and asset and fund services, as well as corporate trust, and market and financing services; and corporate trade and treasury, debt financing, specialized financing, strategic advisory, mergers and acquisition, and equity capital market services for institutional and corporate clients. The company was formerly known as Banque Nationale de Paris and changed its name to BNP Paribas SA in May 2000. BNP Paribas SA was founded in 1848 and is headquartered in Paris, France.
KBC Grp NV/ADR Company Profile
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 primarily in Belgium, Bulgaria, the Czech Republic, Hungary, Ireland, and Slovakia. It accepts deposits; offers loans to individuals, businesses, and public authorities; and provides services, including payments, cash management, trade finance, leasing, corporate finance, and money and capital market products, as well as offers asset management services. KBC Group NV serves customers through a network of approximately 1,521 bank branches, as well as through insurance distribution networks and 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.
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