Capital Bancorp (NASDAQ:CBNK) and Nicolet Bankshares (NASDAQ:NCBS) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.
Risk & Volatility
Capital Bancorp has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, Nicolet Bankshares has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.
Valuation & Earnings
This table compares Capital Bancorp and Nicolet Bankshares' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Capital Bancorp | $107.87 million | 2.50 | $16.90 million | $1.21 | 16.18 |
Nicolet Bankshares | $191.96 million | 4.40 | $54.64 million | $5.52 | 15.33 |
Nicolet Bankshares has higher revenue and earnings than Capital Bancorp. Nicolet Bankshares is trading at a lower price-to-earnings ratio than Capital Bancorp, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Capital Bancorp and Nicolet Bankshares, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Capital Bancorp | 0 | 0 | 1 | 0 | 3.00 |
Nicolet Bankshares | 0 | 1 | 1 | 0 | 2.50 |
Capital Bancorp presently has a consensus price target of $12.00, suggesting a potential downside of 38.71%. Nicolet Bankshares has a consensus price target of $70.50, suggesting a potential downside of 16.67%. Given Nicolet Bankshares' higher possible upside, analysts plainly believe Nicolet Bankshares is more favorable than Capital Bancorp.
Profitability
This table compares Capital Bancorp and Nicolet Bankshares' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Capital Bancorp | 15.13% | 15.12% | 1.28% |
Nicolet Bankshares | 26.37% | 10.36% | 1.31% |
Institutional and Insider Ownership
22.9% of Capital Bancorp shares are held by institutional investors. Comparatively, 37.7% of Nicolet Bankshares shares are held by institutional investors. 41.6% of Capital Bancorp shares are held by insiders. Comparatively, 14.2% of Nicolet Bankshares shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Nicolet Bankshares beats Capital Bancorp on 10 of the 13 factors compared between the two stocks.