Analyzing Capital One Financial (NYSE:COF) and Jernigan Capital (NASDAQ:JCAP)

Jernigan Capital (NASDAQ:JCAP) and Capital One Financial (NYSE:COF) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Volatility & Risk

Jernigan Capital has a beta of -0.02, indicating that its stock price is 102% less volatile than the S&P 500. Comparatively, Capital One Financial has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Dividends

Jernigan Capital pays an annual dividend of $0.96 per share and has a dividend yield of 4.7%. Capital One Financial pays an annual dividend of $3.20 per share and has a dividend yield of 1.6%. Jernigan Capital pays out 39.2% of its earnings in the form of a dividend. Capital One Financial pays out 18.9% 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.

Earnings & Valuation

This table compares Jernigan Capital and Capital One Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jernigan Capital	$659.62 million	1.78	$187.96 million	$2.45	8.33
Capital One Financial	$69.25 billion	1.78	$2.45 billion	$16.94	11.88

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

Analyst Recommendations

This is a summary of recent ratings for Jernigan Capital and Capital One Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jernigan Capital	1	1	4	1	2.71
Capital One Financial	0	4	20	0	2.83

Jernigan Capital presently has a consensus target price of $27.50, suggesting a potential upside of 34.74%. Capital One Financial has a consensus target price of $256.32, suggesting a potential upside of 27.36%. Given Jernigan Capital’s higher possible upside, analysts clearly believe Jernigan Capital is more favorable than Capital One Financial.

Institutional & Insider Ownership

89.8% of Capital One Financial shares are held by institutional investors. 8.3% of Jernigan Capital shares are held by insiders. Comparatively, 0.8% of Capital One Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Jernigan Capital and Capital One Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jernigan Capital	23.50%	35.87%	8.16%
Capital One Financial	13.70%	11.64%	1.94%

Summary

Capital One Financial beats Jernigan Capital on 10 of the 17 factors compared between the two stocks.

About Jernigan Capital

Jernigan Capital is a New York Stock Exchange-listed real estate investment trust (NYSE: JCAP) that provides debt and equity capital to private developers, owners and operators of self-storage facilities with a view to eventual outright ownership of facilities the Company finances. The Company's mission is to maximize shareholder value by accumulating a multi-billion dollar investment portfolio consisting of the newest, most attractive and best located self-storage facilities in the United States through a talented and experienced team demonstrating the highest levels of integrity, dedication, excellence and community.

About Capital One Financial

Capital One Financial Corporation operates as the financial services holding company for the Capital One, National Association, which engages in the provision of various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company accepts checking accounts, money market deposits, negotiable order of withdrawals, savings deposits, and time deposits. Its loan products include credit card loans; auto and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and provides advisory, capital markets, treasury management, and depository services. It serves consumers, small businesses, and commercial clients through digital channels, branches, cafés, and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and California. The company was founded in 1988 and is headquartered in McLean, Virginia.