Xenith Bankshares (NASDAQ: XBKS) and Carolina Bank Holding Inc. (NC) (NASDAQ:CLBH) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Risk and Volatility

Xenith Bankshares has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Carolina Bank Holding Inc. (NC) has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Xenith Bankshares and Carolina Bank Holding Inc. (NC), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xenith Bankshares 0 2 1 0 2.33
Carolina Bank Holding Inc. (NC) 0 0 0 0 N/A

Xenith Bankshares presently has a consensus price target of $28.00, indicating a potential downside of 19.35%. Given Xenith Bankshares’ higher probable upside, analysts clearly believe Xenith Bankshares is more favorable than Carolina Bank Holding Inc. (NC).

Institutional & Insider Ownership

58.7% of Xenith Bankshares shares are owned by institutional investors. Comparatively, 48.9% of Carolina Bank Holding Inc. (NC) shares are owned by institutional investors. 31.7% of Xenith Bankshares shares are owned by insiders. Comparatively, 10.8% of Carolina Bank Holding Inc. (NC) shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Xenith Bankshares and Carolina Bank Holding Inc. (NC)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xenith Bankshares 18.26% 5.55% 0.82%
Carolina Bank Holding Inc. (NC) 14.33% 7.32% 0.68%

Earnings & Valuation

This table compares Xenith Bankshares and Carolina Bank Holding Inc. (NC)’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Xenith Bankshares $103.54 million 7.79 $57.04 million $1.03 33.71
Carolina Bank Holding Inc. (NC) N/A N/A N/A $1.01 27.71

Xenith Bankshares has higher revenue and earnings than Carolina Bank Holding Inc. (NC). Carolina Bank Holding Inc. (NC) is trading at a lower price-to-earnings ratio than Xenith Bankshares, indicating that it is currently the more affordable of the two stocks.

Summary

Xenith Bankshares beats Carolina Bank Holding Inc. (NC) on 9 of the 10 factors compared between the two stocks.

About Xenith Bankshares

Xenith Bankshares, Inc., formerly Hampton Roads Bankshares, Inc., is a bank holding company for Xenith Bank. Xenith Bank is a commercial bank specifically targeting the banking needs of middle market and small businesses, local real estate developers and investors, and retail banking clients. Xenith Bank’s regional area of operations spans from Baltimore, Maryland, to Raleigh and eastern North Carolina, complementing its presence in greater Washington, D.C., greater Richmond, Virginia, and greater Hampton Roads, Virginia. Its service and products consist primarily of taking deposits from, and making loans to, its target customers within its target markets. It offers other banking related specialized products and services to its customers, such as travelers’ checks, coin counters, wire services, online banking and safe deposit box services. Additionally, it offers commercial customers various cash management products, including remote deposit.

About Carolina Bank Holding Inc. (NC)

Carolina Bank Holdings, Inc. is a bank holding company of the Carolina Bank (the Bank). The Bank engages in a general banking business in Guilford, Alamance, Randolph and Forsyth Counties, North Carolina. The Company operates through three segments: the Commercial/Retail Bank, the Mortgage Banking Division and the Holding Company. The Bank’s operations are commercially oriented and directed to individuals and small to medium-sized businesses located in its market area and its deposits and loans are derived from customers in its geographic market. It provides commercial and consumer banking services, including personal and commercial checking and savings accounts, money market accounts, individual retirement accounts and related business and individual banking services. It offers loans, which include construction and development loans, commercial real estate loans, home equity lines, residential real estate loans, commercial and industrial loans, and consumer and other loans.

Receive News & Ratings for Xenith Bankshares Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Xenith Bankshares and related companies with MarketBeat.com's FREE daily email newsletter.