Head to Head Analysis: Community Capital Bancshares (OTCMKTS:ALBY) vs. Bank of the James Financial Group (NASDAQ:BOTJ)

Community Capital Bancshares (OTCMKTS:ALBY) and Bank of the James Financial Group (NASDAQ:BOTJ) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, earnings, profitability and institutional ownership.

Profitability

This table compares Community Capital Bancshares and Bank of the James Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Capital Bancshares	N/A	N/A	N/A
Bank of the James Financial Group	17.17%	14.13%	1.06%

Risk and Volatility

Community Capital Bancshares has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, Bank of the James Financial Group has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500.

Institutional and Insider Ownership

18.5% of Bank of the James Financial Group shares are held by institutional investors. 42.4% of Community Capital Bancshares shares are held by insiders. Comparatively, 11.9% of Bank of the James Financial Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Community Capital Bancshares and Bank of the James Financial Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Capital Bancshares	$15.03 million	2.80	$4.90 million	$3.85	8.40
Bank of the James Financial Group	$62.51 million	1.78	$9.02 million	$2.42	10.13

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

Dividends

Community Capital Bancshares pays an annual dividend of $2.05 per share and has a dividend yield of 6.3%. Bank of the James Financial Group pays an annual dividend of $0.40 per share and has a dividend yield of 1.6%. Community Capital Bancshares pays out 53.2% of its earnings in the form of a dividend. Bank of the James Financial Group pays out 16.5% 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. Bank of the James Financial Group has increased its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of recent ratings for Community Capital Bancshares and Bank of the James Financial Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Capital Bancshares	0	0	0	0	0.00
Bank of the James Financial Group	0	1	0	0	2.00

Summary

Bank of the James Financial Group beats Community Capital Bancshares on 10 of the 15 factors compared between the two stocks.

About Community Capital Bancshares

Community Capital Bancshares, Inc. operates as the holding company for AB&T that provides various banking products and services to individual and corporate customers. The company accepts various deposit products, such as checking, savings, money market, and individual retirement accounts, as well as certificates of deposits. Its loan products include commercial and residential real estate, commercial, financial, agricultural, consumer installment, overdrafts and other revolving credit, and educational loans. The company also offers money transfer, bill pay, remote deposit capture, ACH origination, and merchant services, as well as online, mobile, and text message banking services. The company was incorporated in 1998 and is based in Albany, Georgia.

About Bank of the James Financial Group

Bank of the James Financial Group, Inc. operates as the bank holding company for Bank of the James that provides general retail and commercial banking services to individuals, businesses, associations and organizations, and governmental authorities in Virginia, the United States. It offers checking, savings, individual retirement, and health care saving accounts, as well as other time deposits, including money market accounts and certificates of deposit. The company also provides loans to small- and medium-sized businesses for the purchases of equipment, facilities upgrades, inventory acquisition, and various working capital purposes; commercial and residential construction and development loans; commercial real estate mortgage loans; residential mortgage loans; and secured and unsecured consumer loans, such as lines of credit and overdraft lines of credit, as well as personal, automobile, installment, demand, and home equity loans for personal, family, or household purposes. In addition, it offers other banking services, including safe deposit boxes, traveler's checks, direct deposit of payroll and social security checks, automatic drafts for various accounts, treasury management, and credit card merchant services. Further, the company provides mortgage banking; investment advisory services; securities brokerage and investment services; and telephone and internet banking services comprising online bill pay, as well as acts as an agent for insurance and annuity products. The company was founded in 1999 and is headquartered in Lynchburg, Virginia.