The First of Long Island Corporation (NASDAQ: FLIC) and Capital City Bank Group (NASDAQ:CCBG) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitabiliy, valuation and analyst recommendations.

Profitability

This table compares The First of Long Island Corporation and Capital City Bank Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The First of Long Island Corporation 28.29% 10.84% 0.96%
Capital City Bank Group 9.27% 4.49% 0.44%

Insider and Institutional Ownership

51.2% of The First of Long Island Corporation shares are owned by institutional investors. Comparatively, 31.1% of Capital City Bank Group shares are owned by institutional investors. 4.8% of The First of Long Island Corporation shares are owned by insiders. Comparatively, 26.2% of Capital City Bank Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares The First of Long Island Corporation and Capital City Bank Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
The First of Long Island Corporation $94.79 million 7.19 $33.62 million $1.39 20.28
Capital City Bank Group $129.90 million 2.78 $12.55 million $0.74 28.80

The First of Long Island Corporation has higher revenue, but lower earnings than Capital City Bank Group. The First of Long Island Corporation 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.

Analyst Ratings

This is a summary of recent ratings and price targets for The First of Long Island Corporation and Capital City Bank Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The First of Long Island Corporation 0 1 1 0 2.50
Capital City Bank Group 1 2 0 0 1.67

The First of Long Island Corporation currently has a consensus price target of $24.33, indicating a potential downside of 13.86%. Capital City Bank Group has a consensus price target of $23.00, indicating a potential upside of 7.93%. Given Capital City Bank Group’s higher probable upside, analysts plainly believe Capital City Bank Group is more favorable than The First of Long Island Corporation.

Dividends

The First of Long Island Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 2.0%. Capital City Bank Group pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. The First of Long Island Corporation pays out 40.2% of its earnings in the form of a dividend. Capital City Bank Group pays out 27.0% 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.

Volatility and Risk

The First of Long Island Corporation has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Capital City Bank Group has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Summary

The First of Long Island Corporation beats Capital City Bank Group on 11 of the 16 factors compared between the two stocks.

About The First of Long Island Corporation

The First of Long Island Corporation is a one-bank holding company. The Company provides financial services through its subsidiary, The First National Bank of Long Island (the Bank). Its services include account reconciliation services, bank by mail, personal money orders, bill payment, remote deposit, cash management services, safe deposit boxes, collection services securities transactions, controlled disbursement accounts, signature guarantee services, drive-through banking, merchant credit card services, and investment management and trust services. Its loan portfolio consists of loans to borrowers on Long Island and in the boroughs of New York City, and its real estate loans are secured by properties located in those areas. It has an Investment Management Division that provides investment management, pension trust, personal trust, estate and custody services. Additionally, the Bank has two commercial banking branches in Manhattan.

About Capital City Bank Group

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.

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