Analyzing Red River Bancshares (NASDAQ:RRBI) and KB Financial Group (NYSE:KB)

Red River Bancshares (NASDAQ:RRBI) and KB Financial Group (NYSE:KB) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, analyst recommendations, institutional ownership, risk and valuation.

Dividends

Red River Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 1.0%. KB Financial Group pays an annual dividend of $2.70 per share and has a dividend yield of 2.2%. Red River Bancshares pays out 14.4% of its earnings in the form of a dividend. KB Financial Group pays out 23.2% 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. Red River Bancshares has raised its dividend for 3 consecutive years.

Volatility & Risk

Red River Bancshares has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, KB Financial Group has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Profitability

This table compares Red River Bancshares and KB Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red River Bancshares	26.25%	12.47%	1.39%
KB Financial Group	17.67%	10.11%	0.76%

Earnings and Valuation

This table compares Red River Bancshares and KB Financial Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red River Bancshares	$130.73 million	5.06	$42.76 million	$6.95	14.44
KB Financial Group	$23.41 billion	1.82	$4.04 billion	$11.65	10.32

KB Financial Group has higher revenue and earnings than Red River Bancshares. KB Financial Group is trading at a lower price-to-earnings ratio than Red River Bancshares, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for Red River Bancshares and KB Financial Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red River Bancshares	0	3	0	1	2.50
KB Financial Group	0	1	2	0	2.67

Red River Bancshares currently has a consensus target price of $106.00, suggesting a potential upside of 5.60%. Given Red River Bancshares’ higher possible upside, analysts plainly believe Red River Bancshares is more favorable than KB Financial Group.

Institutional and Insider Ownership

27.5% of Red River Bancshares shares are owned by institutional investors. Comparatively, 11.5% of KB Financial Group shares are owned by institutional investors. 16.6% of Red River Bancshares shares are owned by insiders. Comparatively, 69.0% of KB Financial Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Red River Bancshares beats KB Financial Group on 10 of the 18 factors compared between the two stocks.

About Red River Bancshares

Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit. In addition, the company provides treasury management, private banking, and brokerage; investment advisory, financial planning, and a suite of retirement plans; debit and credit cards, direct deposits, cashier's checks, and wire transfer services; online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and banking services in person, through ATMs, drive-through facilities, night deposits, telephone, mail, mobile banking, and remote deposits. Red River Bancshares, Inc. was incorporated in 1998 and is headquartered in Alexandria, Louisiana.

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.