KB Financial Group Inc (KB) vs Shinhan Financial Group Co Ltd (SHG)

KB Financial Group Inc and Shinhan Financial Group Co Ltd are both Banks Regional companies. KB Financial Group Inc is the larger, with a market value of $44.2B against $37.0B — 1.2× the size. KB Financial Group Inc trades at the lower P/E: 10.8× against 10.9×. KB Financial Group Inc grew revenue faster over the last twelve months: 14.3% against 12.1%. KB Financial Group Inc has the higher net margin (16.4% vs 14.2%) and the lower return on invested capital (0.00% vs 4.47%). Both pay a dividend; Shinhan Financial Group Co Ltd yields more (5.03% vs 4.98%). Across the 20 metrics below, KB Financial Group Inc leads on 11 and Shinhan Financial Group Co Ltd on 9.

Valuation

Metric KB SHG Banks Regional median
P/E 10.81 10.88 12.15
P/S 1.73 1.47 2.37
P/B 1.02 0.87 1.21
Price to free cash flow 10.72 2.56 10.80
EV/EBITDA n/m n/m —
EV/Sales (1.98) 2.65 2.27
Earnings yield 9.25% 9.19% 8.11%
Free cash flow yield 9.33% 39.06% 8.98%

Profitability

Metric KB SHG Banks Regional median
Gross margin 57.75% 56.27% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 16.35% 14.18% 18.66%
Free cash flow margin 16.17% 57.45% 21.18%
Return on equity 9.75% 8.55% 10.64%
Return on assets 0.73% 0.66% 1.13%
Return on invested capital 0.00% 4.47% 8.33%

Growth

Metric KB SHG Banks Regional median
Revenue growth (TTM) 14.28% 12.11% 6.61%
EPS growth (last fiscal year) 15.11% 11.63% —
Revenue growth, 5-year CAGR 8.84% 11.03% 12.30%
Net income growth, 5-year CAGR 4.15% 4.11% 9.71%

Health

Metric KB SHG Banks Regional median
Debt to equity 2.53 1.45 0.22
Current ratio 1.64 0.98 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric KB SHG Banks Regional median
Dividend yield 4.98% 5.03% 3.75%
Payout ratio 0.25 0.27 0.27

Size

Metric KB SHG Banks Regional median
Market cap 44.24b 36.95b 921.07m

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