Reviewing Chain Bridge Bancorp (NYSE:CBNA) and Capital Bancorp (NASDAQ:CBNK)

Capital Bancorp (NASDAQ:CBNK) and Chain Bridge Bancorp (NYSE:CBNA) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Profitability

This table compares Capital Bancorp and Chain Bridge Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capital Bancorp	17.48%	13.48%	1.51%
Chain Bridge Bancorp	35.09%	13.07%	1.31%

Valuation & Earnings

This table compares Capital Bancorp and Chain Bridge Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital Bancorp	$310.06 million	1.87	$57.17 million	$3.31	10.73
Chain Bridge Bancorp	$59.32 million	4.88	$20.24 million	$3.31	13.34

Capital Bancorp has higher revenue and earnings than Chain Bridge Bancorp. Capital Bancorp is trading at a lower price-to-earnings ratio than Chain Bridge Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Capital Bancorp and Chain Bridge Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital Bancorp	0	2	3	0	2.60
Chain Bridge Bancorp	1	4	0	0	1.80

Capital Bancorp currently has a consensus target price of $35.33, indicating a potential downside of 0.53%. Chain Bridge Bancorp has a consensus target price of $38.50, indicating a potential downside of 12.81%. Given Capital Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Capital Bancorp is more favorable than Chain Bridge Bancorp.

Volatility and Risk

Capital Bancorp has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Chain Bridge Bancorp has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500.

Institutional and Insider Ownership

56.1% of Capital Bancorp shares are owned by institutional investors. 33.5% of Capital Bancorp shares are owned by company insiders. Comparatively, 25.4% of Chain Bridge Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Capital Bancorp beats Chain Bridge Bancorp on 10 of the 13 factors compared between the two stocks.

About Capital Bancorp

Capital Bancorp, Inc. operates as the bank holding company for Capital Bank, N.A. that provides various banking products and services to businesses, not-for-profit associations, and entrepreneurs in Maryland, Virginia, and the District of Columbia. It operates through Commercial Banking, Capital Bank Home Loans, and OpenSky segments. The company offers a range of deposit products, including checking and savings, time, interest bearing and noninterest-bearing demand, and money market accounts, as well as certificates of deposit; and credit cards. It also originates residential mortgages; issues trust preferred securities; and provides residential and commercial real estate, construction, and commercial and industrial loans, as well as other consumer loans, such as term loans, car loans, and boat loans to small to medium-sized businesses, professionals, real estate investors, and small residential builders and individuals. Capital Bancorp, Inc. was founded in 1974 and is headquartered in Rockville, Maryland.

About Chain Bridge Bancorp

Chain Bridge Bancorp, Inc. operates as a Delaware-chartered bank holding company for Chain Bridge Bank, National Association that provides commercial and personal banking, and trust services in the United States. Its deposit products include non-interest-bearing and interest-bearing checking accounts, savings accounts, and money market accounts. The company’s loan portfolio comprises of residential and commercial real estate loans, commercial loans, and consumer loans. It also provides treasury management, payments, trusts and estate administration, wealth management, and asset custody services. The company was incorporated in 2006 and is headquartered in McLean, Virginia.