Guaranty Bancorp (NASDAQ: GBNK) and Capital City Bank Group (NASDAQ:CCBG) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Guaranty Bancorp and Capital City Bank Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Guaranty Bancorp 0 3 2 0 2.40
Capital City Bank Group 1 3 0 0 1.75

Guaranty Bancorp presently has a consensus target price of $29.13, indicating a potential downside of 0.60%. Capital City Bank Group has a consensus target price of $23.00, indicating a potential downside of 7.70%. Given Guaranty Bancorp’s stronger consensus rating and higher possible upside, equities analysts clearly believe Guaranty Bancorp is more favorable than Capital City Bank Group.

Profitability

This table compares Guaranty Bancorp and Capital City Bank Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Guaranty Bancorp 24.17% 11.20% 1.19%
Capital City Bank Group 10.35% 5.06% 0.50%

Insider & Institutional Ownership

70.2% of Guaranty Bancorp shares are held by institutional investors. Comparatively, 32.2% of Capital City Bank Group shares are held by institutional investors. 8.4% of Guaranty Bancorp shares are held by insiders. Comparatively, 26.2% of Capital City Bank Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Guaranty Bancorp and Capital City Bank Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Guaranty Bancorp $119.11 million 7.19 $24.72 million $1.33 22.03
Capital City Bank Group $134.84 million 3.14 $11.74 million $0.84 29.67

Guaranty Bancorp has higher earnings, but lower revenue than Capital City Bank Group. Guaranty Bancorp 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.

Dividends

Guaranty Bancorp pays an annual dividend of $0.50 per share and has a dividend yield of 1.7%. Capital City Bank Group pays an annual dividend of $0.28 per share and has a dividend yield of 1.1%. Guaranty Bancorp pays out 37.6% of its earnings in the form of a dividend. Capital City Bank Group pays out 33.3% 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.

Risk and Volatility

Guaranty Bancorp has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Capital City Bank Group has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Summary

Guaranty Bancorp beats Capital City Bank Group on 12 of the 16 factors compared between the two stocks.

Guaranty Bancorp Company Profile

Guaranty Bancorp is a bank holding company. The Company’s bank subsidiary is Guaranty Bank and Trust Company (the Bank). As of December 31, 2016, the Company operated 32 branches and two investment management firms, Private Capital Management LLC (PCM) and Cherry Hills Investment Advisors Inc. (CHIA), in Colorado through the Bank. The Bank provides banking and other financial services, including commercial and industrial loans, real estate loans, construction loans, consumer loans and agriculture loans across its targeted Colorado markets to consumers and small to medium-sized businesses, including the owners and employees of those businesses. Along with loans and depository services, the Bank also provides wealth management solutions, including trust and investment management services. The Bank’s commercial and industrial loan portfolio consists of operating loans secured by business assets.

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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