Reviewing CenterState Banks (CSFL) and Capital City Bank Group (CCBG)
CenterState Banks (NASDAQ: CSFL) and Capital City Bank Group (NASDAQ:CCBG) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.
CenterState Banks pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. Capital City Bank Group pays an annual dividend of $0.20 per share and has a dividend yield of 1.0%. CenterState Banks pays out 19.5% 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. CenterState Banks is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares CenterState Banks and Capital City Bank Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CenterState Banks||$260.07 million||5.52||$73.80 million||$1.23||19.46|
|Capital City Bank Group||$129.72 million||2.72||$12.55 million||$0.74||28.11|
CenterState Banks has higher revenue and earnings than Capital City Bank Group. CenterState Banks 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.
This is a summary of recent ratings for CenterState Banks and Capital City Bank Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Capital City Bank Group||1||2||0||0||1.67|
CenterState Banks presently has a consensus price target of $20.00, indicating a potential downside of 16.42%. Capital City Bank Group has a consensus price target of $23.00, indicating a potential upside of 10.58%. Given Capital City Bank Group’s higher possible upside, analysts plainly believe Capital City Bank Group is more favorable than CenterState Banks.
Insider & Institutional Ownership
68.4% of CenterState Banks shares are owned by institutional investors. Comparatively, 31.1% of Capital City Bank Group shares are owned by institutional investors. 3.7% of CenterState Banks shares are owned by company insiders. Comparatively, 26.2% of Capital City Bank Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
CenterState Banks has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Capital City Bank Group has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.
This table compares CenterState Banks and Capital City Bank Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Capital City Bank Group||9.27%||4.49%||0.44%|
CenterState Banks beats Capital City Bank Group on 12 of the 16 factors compared between the two stocks.
CenterState Banks Company Profile
CenterState Banks, Inc. is a financial holding company, which owns CenterState Bank of Florida, N.A. (CenterState Bank or the Bank). The Company provides a range of consumer and commercial banking services to individuals, businesses and industries. The Company’s segments include commercial and retail banking, correspondent banking and capital markets division, and corporate overhead and administration. Its commercial and retail banking segment provides traditional deposit and lending products and services to its commercial and retail customers. Its correspondent banking and capital markets segment operates as a division within its subsidiary bank, which provides hedging services, loan brokerage and consulting services. The Bank offers a range of lending services, including real estate, consumer and commercial loans, to individuals and small businesses and other organizations that are located in or conduct a substantial portion of their business in its market area.
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.
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