Analyzing Capital City Bank Group (NASDAQ:CCBG) and University Bancorp (OTCMKTS:UNIB)

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

Profitability

This table compares University Bancorp and Capital City Bank Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
University Bancorp	N/A	N/A	N/A
Capital City Bank Group	19.55%	11.45%	1.25%

Analyst Ratings

This is a breakdown of current ratings for University Bancorp and Capital City Bank Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
University Bancorp	0	0	0	0	0.00
Capital City Bank Group	0	2	1	0	2.33

Capital City Bank Group has a consensus price target of $38.33, suggesting a potential upside of 15.71%. Given Capital City Bank Group’s stronger consensus rating and higher possible upside, analysts plainly believe Capital City Bank Group is more favorable than University Bancorp.

Dividends

University Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 1.4%. Capital City Bank Group pays an annual dividend of $0.96 per share and has a dividend yield of 2.9%. Capital City Bank Group pays out 30.8% of its earnings in the form of a dividend. Capital City Bank Group has raised its dividend for 11 consecutive years. Capital City Bank Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares University Bancorp and Capital City Bank Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
University Bancorp	$105.57 million	0.71	$5.43 million	N/A	N/A
Capital City Bank Group	$226.50 million	2.49	$52.92 million	$3.12	10.62

Capital City Bank Group has higher revenue and earnings than University Bancorp.

Risk & Volatility

University Bancorp has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, Capital City Bank Group has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Institutional & Insider Ownership

44.6% of Capital City Bank Group shares are owned by institutional investors. 63.7% of University Bancorp shares are owned by company insiders. Comparatively, 19.6% of Capital City Bank Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Capital City Bank Group beats University Bancorp on 13 of the 15 factors compared between the two stocks.

About University Bancorp

University Bancorp, Inc. operates as the bank holding company for University Bank that provides various personal, business, and community banking services in the United States. It offers checking, NOW, savings, money market, time deposit, and certificates of deposit accounts. The company's consumer loans include home equity, short term, automobile, personal, and recreational vehicle loans, as well as home equity lines of credits; SBA, commercial real estate, equipment, home improvement, and other instalment loans; and non-profit loans, as well as working capital lines of credit. In addition, the company provides foreign currency exchange; reverse mortgage; online banking and bill pay; online reorder checks; wire transfer; and courier services, as well as credit card and ATM services. Further, it offers life, health, property, and casualty insurance products, as well as investment products, including annuities. University Bancorp, Inc. was founded in 1890 and is based in Ann Arbor, Michigan.

About Capital City Bank Group

Capital City Bank Group, Inc. operates as the financial holding company for Capital City Bank that provides a range of banking- related services to individual and corporate clients. The company offers financing for commercial business properties, equipment, inventories, and accounts receivable, as well as commercial leasing and letters of credit; treasury management services; and merchant credit card transaction processing services. It also provides commercial and residential real estate lending products, as well as fixed and adjustable-rate residential mortgage loans; personal, automobile, boat/RV, and home equity loans; and credit card programs. In addition, the company offers institutional banking services, including customized checking and savings accounts, cash management systems, tax-exempt loans, lines of credit, and term loans to meet the needs of state and local governments, public schools and colleges, charities, membership, and not-for-profit associations. Further, it provides consumer banking services comprising checking accounts, savings programs, interactive/automated teller machines, debit/credit cards, night deposit services, safe deposit facilities, and online and mobile banking services. Additionally, the company provides asset management for individuals through agency, personal trust, IRA, and personal investment management accounts; and various retail securities products, such as the U.S. government bonds, tax-free municipal bonds, stocks, mutual funds, unit investment trusts, annuities, life insurance, and long-term health care, as well as business, estate, financial, insurance and business planning, tax planning, and asset protection advisory services. Capital City Bank Group, Inc. was founded in 1895 and is headquartered in Tallahassee, Florida.