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

Profitability

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
CenterState Banks 22.70% 10.75% 1.27%
Capital City Bank Group 9.27% 4.49% 0.44%

Insider & Institutional Ownership

68.4% of CenterState Banks shares are held by institutional investors. Comparatively, 31.1% of Capital City Bank Group shares are held by institutional investors. 3.7% of CenterState Banks 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, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

CenterState Banks has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Capital City Bank Group has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for CenterState Banks and Capital City Bank Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CenterState Banks 0 0 1 0 3.00
Capital City Bank Group 1 2 0 0 1.67

CenterState Banks presently has a consensus price target of $20.00, suggesting a potential downside of 16.42%. Capital City Bank Group has a consensus price target of $23.00, suggesting a potential upside of 10.58%. Given Capital City Bank Group’s higher probable upside, analysts clearly believe Capital City Bank Group is more favorable than CenterState Banks.

Dividends

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.

Earnings and Valuation

This table compares CenterState Banks and Capital City Bank Group’s top-line revenue, earnings per share 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.

Summary

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

About CenterState Banks

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.

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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