KBC Group (OTCMKTS:KBCSY) and Grupo Aval Acciones y Valores (NYSE:AVAL) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.
This table compares KBC Group and Grupo Aval Acciones y Valores’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Grupo Aval Acciones y Valores||9.01%||6.68%||0.71%|
This is a summary of recent recommendations for KBC Group and Grupo Aval Acciones y Valores, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Grupo Aval Acciones y Valores||1||0||0||0||1.00|
Given Grupo Aval Acciones y Valores’ higher probable upside, analysts clearly believe Grupo Aval Acciones y Valores is more favorable than KBC Group.
KBC Group pays an annual dividend of $0.17 per share and has a dividend yield of 0.4%. Grupo Aval Acciones y Valores pays an annual dividend of $0.27 per share and has a dividend yield of 4.7%. KBC Group pays out 8.9% of its earnings in the form of a dividend. Grupo Aval Acciones y Valores pays out 45.8% 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. Grupo Aval Acciones y Valores has raised its dividend for 1 consecutive years. Grupo Aval Acciones y Valores is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
KBC Group has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500. Comparatively, Grupo Aval Acciones y Valores has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.
Earnings and Valuation
This table compares KBC Group and Grupo Aval Acciones y Valores’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|KBC Group||$10.23 billion||3.35||$1.64 billion||$1.91||21.51|
|Grupo Aval Acciones y Valores||$5.97 billion||1.08||$704.86 million||$0.59||9.81|
KBC Group has higher revenue and earnings than Grupo Aval Acciones y Valores. Grupo Aval Acciones y Valores is trading at a lower price-to-earnings ratio than KBC Group, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
0.1% of KBC Group shares are owned by institutional investors. Comparatively, 3.4% of Grupo Aval Acciones y Valores shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
KBC Group beats Grupo Aval Acciones y Valores on 12 of the 16 factors compared between the two stocks.
About KBC Group
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. The company offers demand deposits and savings accounts; home and mortgage loans; consumer finance and SME funding services; credit, investment fund and asset management, and life and non-life insurance; and cash management, payments, trade finance, lease, money market, capital market products, and stockbroking services. It also provides Internet and mobile banking services. As of December 31, 2020, it operated 476 bank branches and 336 insurance agencies in Belgium; 212 bank branches in the Czech Republic; 175 bank branches in Slovakia; 204 bank branches in Hungary; 175 bank branches in Bulgaria; and 12 bank branches in Ireland. KBC Group NV serves customers through agents, brokers, and various 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.
About Grupo Aval Acciones y Valores
Grupo Aval Acciones y Valores S.A. provides a range of financial services and products to public and private sector customers in Colombia and Central America. The company offers deposit products and services, such as checking and savings accounts, and time deposits, as well as other deposits, including deposits from correspondent banks, cashier checks, and collection services. It also provides commercial loans, which include general purpose loans, working capital loans, leases, loans funded by development banks, corporate credit cards, and overdraft loans; consumer loans comprising payroll, personal, automobile, and other vehicle loans, as well as microcredit and mortgage loans. In addition, the company offers pension and severance fund management services; advice related to capital markets, mergers and acquisitions and project finance transactions; mobile and online banking services; and bancassurance, trust, portfolio management, bonded warehousing and brokerage transactions, real estate escrow, merchandise and document storage and deposit, customs agency, cargo management, surety bond and merchandise distribution, factoring, and payment and collection services. Further, it is involved in merchant and investment banking activities; trading activities, such as fixed income trading, and derivatives and foreign exchange operations, as well as the provision of the treasury, real estate, leasing and training, and insurance services; and deposit and lending operations in foreign currencies. As of December 31, 2020, the company operated through a network of 1,258 branches, 3,383 ATMs, and 36,249 other points of service in Colombia; and 331 branches, 2,179 ATMs, and 8,985 other points of service in Central America. Grupo Aval Acciones y Valores S.A. was incorporated in 1994 and is headquartered in BogotÃ¡, Colombia.
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