Capital Bank Financial (NASDAQ: CBF) and Peoples Bancorp (NASDAQ:PEBO) are both financials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Volatility & Risk

Capital Bank Financial has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, Peoples Bancorp has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Earnings & Valuation

This table compares Capital Bank Financial and Peoples Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Capital Bank Financial $341.60 million 6.36 $58.16 million $1.57 26.59
Peoples Bancorp $166.51 million 3.73 $31.15 million $2.02 16.83

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

Institutional & Insider Ownership

64.4% of Capital Bank Financial shares are held by institutional investors. Comparatively, 63.5% of Peoples Bancorp shares are held by institutional investors. 12.4% of Capital Bank Financial shares are held by company insiders. Comparatively, 3.0% of Peoples Bancorp shares are held by company 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.

Analyst Recommendations

This is a breakdown of current recommendations for Capital Bank Financial and Peoples Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capital Bank Financial 0 2 1 0 2.33
Peoples Bancorp 0 3 0 0 2.00

Capital Bank Financial presently has a consensus price target of $44.00, suggesting a potential upside of 5.39%. Peoples Bancorp has a consensus price target of $33.50, suggesting a potential downside of 1.44%. Given Capital Bank Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Capital Bank Financial is more favorable than Peoples Bancorp.

Dividends

Capital Bank Financial pays an annual dividend of $0.48 per share and has a dividend yield of 1.1%. Peoples Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.6%. Capital Bank Financial pays out 30.6% of its earnings in the form of a dividend. Peoples Bancorp pays out 43.6% 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.

Profitability

This table compares Capital Bank Financial and Peoples Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Capital Bank Financial 25.58% 7.69% 1.02%
Peoples Bancorp 21.10% 7.99% 1.02%

Summary

Capital Bank Financial beats Peoples Bancorp on 11 of the 15 factors compared between the two stocks.

About Capital Bank Financial

Capital Bank Financial Corp. is a bank holding company whose business is conducted through Capital Bank Corporation (the Bank). The Company, through its branches, offers a range of commercial and consumer loans and deposits, as well as ancillary financial services. It offers a range of commercial loan products, including owner occupied and non-owner occupied commercial real estate; construction; working capital loans and lines of credit; demand and time loans, and equipment, inventory and accounts receivable financing. In addition to business demand, savings and money market accounts, it also provides cash management services and deposit products. It offers various services to its customers, including checking, savings and money market accounts, certificates of deposit and debit and credit cards. It offers consumer loan products, including home equity loans and lines of credit; second lien mortgages; new and used auto loans; new and used boat loans, and overdraft protection.

About Peoples Bancorp

Peoples Bancorp Inc. is a financial holding company. The Company operates principally through its subsidiary, Peoples Bank. Peoples Bank’s operating subsidiaries include Peoples Insurance Agency, LLC (Peoples Insurance) and two asset management companies, PBNA, L.L.C. and Peoples Tax Credit Equity, LLC. Peoples Investment Company has one subsidiary, Peoples Capital Corporation. The Company offers banking, insurance, investment and trust solutions. Its products and services include various demand deposit accounts, savings accounts, money market accounts and certificates of deposit; commercial, consumer and real estate mortgage loans (both commercial and residential) and lines of credit; debit and automated teller machine (ATM) cards; credit cards for individuals and businesses; merchant credit card transaction processing services; corporate and personal trust services; a range of life, health and property and casualty insurance products, and brokerage services.

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