Community First Bancshares (CFBI) and First Capital (FCAP) Critical Review

Community First Bancshares (NASDAQ:CFBI) and First Capital (NASDAQ:FCAP) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Profitability

This table compares Community First Bancshares and First Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Community First Bancshares 2.78% 0.59% 0.15%
First Capital 24.09% 10.72% 1.11%

Dividends

First Capital pays an annual dividend of $0.92 per share and has a dividend yield of 2.2%. Community First Bancshares does not pay a dividend. First Capital has increased its dividend for 2 consecutive years.

Risk & Volatility

Community First Bancshares has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500. Comparatively, First Capital has a beta of -0.4, indicating that its stock price is 140% less volatile than the S&P 500.

Insider and Institutional Ownership

2.6% of Community First Bancshares shares are held by institutional investors. Comparatively, 4.8% of First Capital shares are held by institutional investors. 1.4% of Community First Bancshares shares are held by insiders. Comparatively, 4.9% of First Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Community First Bancshares and First Capital, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Community First Bancshares 0 0 0 0 N/A
First Capital 0 0 0 0 N/A

Valuation & Earnings

This table compares Community First Bancshares and First Capital’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Community First Bancshares $16.20 million 4.96 $440,000.00 N/A N/A
First Capital $33.12 million 4.27 $7.43 million N/A N/A

First Capital has higher revenue and earnings than Community First Bancshares.

Summary

First Capital beats Community First Bancshares on 9 of the 12 factors compared between the two stocks.

Community First Bancshares Company Profile

Community First Bancshares, Inc. operates as the holding company for Newton Federal Bank that provides various banking products and services in the United States. The company offers various deposit accounts, including checking accounts, savings accounts, and certificate of deposit accounts. It also provides one-to four-family residential real estate loans, commercial real estate loans, commercial and industrial loans, construction and land loans, and consumer loans, as well as multi-family residential real estate loans, and home equity loans and lines of credit. In addition, the company invests in securities; and offers money transfer and other banking services. It operates through a main office and two branch offices in Covington, Georgia; and a loan production office in Bogart, Georgia. The company was founded in 1928 and is based in Covington, Georgia. Community First Bancshares, Inc. is a subsidiary of Community First Bancshares, MHC.

First Capital Company Profile

First Capital, Inc. operates as the bank holding company for First Harrison Bank that provides various banking services to individuals and business customers. The company offers a range of deposit instruments, including non-interest bearing checking accounts, negotiable order of withdrawal accounts, money market accounts, regular savings accounts, certificates of deposit, and retirement savings plans. It also provides real estate mortgage loans, such as fixed-rate and adjustable rate mortgage residential loans, construction loans for residential and commercial properties, and commercial real estate loans, as well as commercial business loans. In addition, the company originates mortgage loans for sale in the secondary market and sells non-deposit investment products; and offers various secured or guaranteed consumer loans comprising automobile and truck loans, home equity loans, home improvement loans, boat loans, mobile home loans, and loans secured by savings deposits, as well as unsecured consumer loans. It provides its products and services through 18 locations in Indiana and Kentucky. First Capital, Inc. was founded in 1891 and is headquartered in Corydon, Indiana.

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