Head-To-Head Contrast: Capital Bancorp (NASDAQ:CBNK) versus Banco Bilbao Viscaya Argentaria (NYSE:BBVA)

Banco Bilbao Viscaya Argentaria (NYSE:BBVA) and Capital Bancorp (NASDAQ:CBNK) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

3.0% of Banco Bilbao Viscaya Argentaria shares are held by institutional investors. Comparatively, 56.1% of Capital Bancorp shares are held by institutional investors. 0.0% of Banco Bilbao Viscaya Argentaria shares are held by insiders. Comparatively, 33.5% of Capital Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Banco Bilbao Viscaya Argentaria pays an annual dividend of $1.14 per share and has a dividend yield of 4.3%. Capital Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 1.4%. Banco Bilbao Viscaya Argentaria pays out 51.8% of its earnings in the form of a dividend. Capital Bancorp 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. Capital Bancorp has raised its dividend for 3 consecutive years.

Profitability

This table compares Banco Bilbao Viscaya Argentaria and Capital Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Bilbao Viscaya Argentaria	27.75%	18.05%	1.27%
Capital Bancorp	17.47%	13.14%	1.46%

Earnings & Valuation

This table compares Banco Bilbao Viscaya Argentaria and Capital Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Bilbao Viscaya Argentaria	$41.77 billion	3.53	$11.89 billion	$2.20	12.02
Capital Bancorp	$310.06 million	2.03	$57.17 million	$3.40	11.39

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Banco Bilbao Viscaya Argentaria and Capital Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bilbao Viscaya Argentaria	1	8	4	1	2.36
Capital Bancorp	0	5	2	0	2.29

Capital Bancorp has a consensus target price of $39.67, indicating a potential upside of 2.44%. Given Capital Bancorp’s higher possible upside, analysts clearly believe Capital Bancorp is more favorable than Banco Bilbao Viscaya Argentaria.

Risk & Volatility

Banco Bilbao Viscaya Argentaria has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Capital Bancorp has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Summary

Banco Bilbao Viscaya Argentaria beats Capital Bancorp on 10 of the 18 factors compared between the two stocks.

About Banco Bilbao Viscaya Argentaria

Banco Bilbao Vizcaya Argentaria, S.A. provides retail banking, wholesale banking, and asset management services in the United States, Spain, Mexico, Turkey, South America, and internationally. The company offers savings account, demand deposits, and time deposits; and loan products, such as residential mortgages, other households, credit card loans, loans to enterprises and public sector, as well as consumer finance. It provides insurance and asset management business, including corporate, commercial, SME, payment systems, retail, private and investment banking, pension and life insurance, leasing, factoring, and brokerage. The company provides its products through online and mobile channels. Banco Bilbao Vizcaya Argentaria, S.A. was founded in 1857 and is headquartered in Bilbao, Spain.

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.