Catalyst Bancorp (NASDAQ:CLST) versus Capital City Bank Group (NASDAQ:CCBG) Critical Analysis

Capital City Bank Group (NASDAQ:CCBG) and Catalyst Bancorp (NASDAQ:CLST) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Capital City Bank Group	21.50%	11.92%	1.39%
Catalyst Bancorp	14.42%	2.75%	0.80%

Institutional & Insider Ownership

44.6% of Capital City Bank Group shares are owned by institutional investors. Comparatively, 33.1% of Catalyst Bancorp shares are owned by institutional investors. 19.6% of Capital City Bank Group shares are owned by insiders. Comparatively, 5.9% of Catalyst Bancorp shares are owned by 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.

Risk & Volatility

Capital City Bank Group has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, Catalyst Bancorp has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital City Bank Group	$240.59 million	2.80	$52.92 million	$3.57	11.05
Catalyst Bancorp	$10.02 million	6.04	-$3.09 million	$0.59	24.95

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

Analyst Ratings

This is a summary of current ratings for Capital City Bank Group and Catalyst Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital City Bank Group	0	1	2	0	2.67
Catalyst Bancorp	0	1	0	0	2.00

Capital City Bank Group currently has a consensus price target of $45.00, indicating a potential upside of 14.04%. Given Capital City Bank Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Capital City Bank Group is more favorable than Catalyst Bancorp.

Summary

Capital City Bank Group beats Catalyst Bancorp on 12 of the 14 factors compared between the two stocks.

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.

About Catalyst Bancorp

Catalyst Bancorp, Inc. operates as a holding company for Catalyst Bank that provides various banking services to individuals and businesses in Louisiana. The company accepts various deposit products, including savings accounts, demand and NOW accounts, money market accounts, and certificates of deposit. It also offers single family residential first mortgage loans, commercial real estate mortgage loans, multi-family residential mortgage loans, commercial and industrial loans, construction and land loans, consumer loans, and other loans. In addition, the company invests in various types of securities comprising mortgage-backed securities, the U.S. treasury obligations, securities of various federal agencies and of state and municipal governments, certificates of deposit at federally insured banks and savings institutions, and federal funds. Catalyst Bancorp, Inc. was founded in 1922 and is headquartered in Opelousas, Louisiana.