Capital City Bank Group (NASDAQ: CCBG) and Banc of California (NYSE:BANC) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitabiliy, institutional ownership and risk.

Institutional & Insider Ownership

31.1% of Capital City Bank Group shares are owned by institutional investors. 26.2% of Capital City Bank Group shares are owned by company insiders. Comparatively, 16.9% of Banc of California shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Capital City Bank Group has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Banc of California has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.

Dividends

Capital City Bank Group pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Banc of California pays an annual dividend of $0.52 per share and has a dividend yield of 2.5%. Capital City Bank Group pays out 27.0% of its earnings in the form of a dividend. Banc of California pays out 34.7% 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.

Profitability

This table compares Capital City Bank Group and Banc of California’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Capital City Bank Group 9.27% 4.51% 0.44%
Banc of California 17.12% 14.44% 0.95%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Capital City Bank Group and Banc of California, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capital City Bank Group 1 2 0 0 1.67
Banc of California 0 1 3 0 2.75

Capital City Bank Group presently has a consensus price target of $23.00, suggesting a potential upside of 7.88%. Banc of California has a consensus price target of $22.00, suggesting a potential upside of 7.58%. Given Capital City Bank Group’s higher possible upside, analysts plainly believe Capital City Bank Group is more favorable than Banc of California.

Valuation and Earnings

This table compares Capital City Bank Group and Banc of California’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Capital City Bank Group $129.90 million 2.78 $12.55 million $0.74 28.81
Banc of California $520.57 million 1.98 $75.43 million $1.50 13.63

Banc of California has higher revenue and earnings than Capital City Bank Group. Banc of California is trading at a lower price-to-earnings ratio than Capital City Bank Group, indicating that it is currently the more affordable of the two stocks.

Summary

Banc of California beats Capital City Bank Group on 10 of the 16 factors compared between the two stocks.

Capital City Bank Group Company Profile

Capital City Bank Group, Inc. is a financial holding company. The Company provides a range of banking and banking-related services to individual and corporate clients through its subsidiary, Capital City Bank (CCB or the Bank), with banking offices located in Florida, Georgia and Alabama. It operates through commercial banking segment with over four principal services, including Banking Services (CCB), Data Processing Services (Capital City Services Company), Trust and Asset Management Services (Capital City Trust Company) and Brokerage Services (Capital City Banc Investments, Inc.). In addition to its banking subsidiary, the Bank has three subsidiaries, Capital City Trust Company, Capital City Banc Investments, Inc. and Capital City Services Company. As of December 31, 2016, its total loans were $1,572 billion. As of December 31, 2016, the Bank’s total investment securities were $700.1 million. As of December 31, 2016, The Bank’s total deposits are approximately $2.412 million.

Banc of California Company Profile

Banc of California, Inc. is a financial holding company. The Company is the parent of Banc of California, National Association (the Bank). The Company operates through Commercial Banking; Mortgage Banking, and Corporate/Other segments. As of December 31, 2016, the Bank had 90 California banking locations, including 39 full service branches in San Diego, Orange, Santa Barbara, and Los Angeles Counties. The Bank offers automated bill payment, cash and treasury management, master demand accounts, foreign exchange, interest rate swaps, trust services, card payment services, remote and mobile deposit capture, automatic clearing house (ACH) origination, wire transfer, direct deposit, and safe deposit boxes. Bank customers also have the ability to access their accounts through a nationwide network of automated teller machines (ATMs), online, telephone and mobile banking. The Bank’s lending activities are focused on providing financing to private businesses, entrepreneurs and homeowners.

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