National Bank (NYSE:NBHC) and Capital Bancorp (NASDAQ:CBNK) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
This table compares National Bank and Capital Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
98.0% of National Bank shares are owned by institutional investors. Comparatively, 22.7% of Capital Bancorp shares are owned by institutional investors. 5.5% of National Bank shares are owned by company insiders. Comparatively, 39.4% of Capital Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility and Risk
National Bank has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Capital Bancorp has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.
Valuation & Earnings
This table compares National Bank and Capital Bancorp’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|National Bank||$325.35 million||3.30||$80.36 million||$2.55||13.50|
|Capital Bancorp||$107.87 million||1.84||$16.90 million||$1.21||11.90|
National Bank has higher revenue and earnings than Capital Bancorp. Capital Bancorp is trading at a lower price-to-earnings ratio than National Bank, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for National Bank and Capital Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
National Bank presently has a consensus target price of $38.50, suggesting a potential upside of 11.85%. Given National Bank’s higher possible upside, analysts clearly believe National Bank is more favorable than Capital Bancorp.
National Bank beats Capital Bancorp on 10 of the 13 factors compared between the two stocks.
National Bank Company Profile
National Bank Holdings Corporation operates as the bank holding company for NBH Bank, N.A. that provides various banking products and financial services to commercial, business, and consumer clients in the United States. The company offers deposit products, including checking accounts, savings accounts, money market accounts, and other deposit accounts, including fixed-rate and fixed maturity time deposits. It also provides commercial and industrial loans and leases, such as working capital loans, equipment loans, lender finance loans, agriculture loans, government and non-profit loans, owner occupied commercial real estate loans, and other commercial loans and leases. The company also offers non-owner occupied commercial real estate loans consisting of loans on multi-family construction properties; commercial properties, such as office buildings, retail centers, or free-standing commercial properties; and multi-family and investor properties, as well as raw land development loans. In addition, it offers treasury management solutions comprising online and mobile banking, commercial credit card, wire transfer, automated clearing house, electronic bill payment, lock box, remote deposit capture, merchant processing, cash vault, controlled disbursements, and fraud prevention services, as well as other auxiliary services, including account reconciliation, collections, repurchase accounts, zero balance accounts, and sweep accounts. As of December 31, 2017, the company operated through a network of 85 banking centers located in Colorado, the greater Kansas City area, New Mexico, and Texas. It also operates 106 ATMs. The company was formerly known as NBH Holdings Corp. and changed its name to National Bank Holdings Corporation in March 2012. National Bank Holdings Corporation was incorporated in 2009 and is headquartered in Greenwood Village, Colorado.
Capital Bancorp Company Profile
Capital Bancorp, Inc. operates as the bank holding company for Capital Bank, N.A. that provides various commercial banking products and services to businesses, not-for-profit associations, and entrepreneurs in the United States. The company offers a range of deposit products and services, including various checking and savings accounts, certificates of deposit, money market accounts, debit cards, remote deposit capture services, online and mobile banking services, e-statements, and bank-by-mail and direct deposit services, as well as business accounts, and cash and treasury management services. It also provides lending services, such as residential and commercial real estate loans, construction loans, commercial business loans, and credit card lines, as well as loans to individuals comprising secured and unsecured installment and term loans, car loans, and boat loans. In addition, the company originates residential mortgages for sale in the secondary market; and offers short-term secured real estate financing services. It operates through five commercial bank branches, four mortgage offices, one loan production office, a limited service branch, corporate offices, and operations facilities in the greater Washington, D.C. and Baltimore, Maryland markets. The company was incorporated in 1998 and is headquartered in Rockville, Maryland.
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