Carver Bancorp (NASDAQ:CARV – Get Free Report) and Capital City Bank Group (NASDAQ:CCBG – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.
Institutional & Insider Ownership
18.2% of Carver Bancorp shares are held by institutional investors. Comparatively, 44.6% of Capital City Bank Group shares are held by institutional investors. 1.3% of Carver Bancorp shares are held by insiders. Comparatively, 19.8% of Capital City Bank Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Carver Bancorp and Capital City Bank Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Carver Bancorp | $22.74 million | 0.48 | -$13.74 million | ($1.36) | -1.26 |
| Capital City Bank Group | $247.41 million | 3.41 | $61.56 million | $3.60 | 13.70 |
Capital City Bank Group has higher revenue and earnings than Carver Bancorp. Carver Bancorp is trading at a lower price-to-earnings ratio than Capital City Bank Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings for Carver Bancorp and Capital City Bank Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Carver Bancorp | 1 | 0 | 0 | 0 | 1.00 |
| Capital City Bank Group | 0 | 3 | 1 | 0 | 2.25 |
Capital City Bank Group has a consensus target price of $51.75, suggesting a potential upside of 4.95%. Given Capital City Bank Group’s stronger consensus rating and higher possible upside, analysts plainly believe Capital City Bank Group is more favorable than Carver Bancorp.
Profitability
This table compares Carver Bancorp and Capital City Bank Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Carver Bancorp | -34.89% | -171.55% | -1.82% |
| Capital City Bank Group | 21.37% | 11.11% | 1.40% |
Risk and Volatility
Carver Bancorp has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Capital City Bank Group has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500.
Summary
Capital City Bank Group beats Carver Bancorp on 13 of the 14 factors compared between the two stocks.
About Carver Bancorp
Carver Bancorp, Inc. operates as the holding company for Carver Federal Savings Bank that provides consumer and commercial banking services for consumers, businesses, non-profit organizations, and governmental and quasi-governmental agencies primarily in New York. It accepts various deposit products, including demand, savings, and time deposits; passbook and statement accounts, and certificates of deposit; and individual retirement accounts. The company provides lending products, such as one-to-four family residential, multifamily real estate, and commercial real estate lending; and construction, business and small business administration, and consumer and other loans. In addition, it offers other consumer and commercial banking products and services, including debit cards, online account opening and banking, online bill pay, and telephone banking, as well as check cashing, wire transfer, bill payment, reloadable prepaid card, and money order services. Carver Bancorp, Inc. was founded in 1948 and is headquartered in New York, New York.
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.
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