Valley National Bancorp (NYSE: VLY) and Capital City Bank Group (NASDAQ:CCBG) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
This is a summary of current ratings and target prices for Valley National Bancorp and Capital City Bank Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Valley National Bancorp||0||5||2||0||2.29|
|Capital City Bank Group||1||3||0||0||1.75|
Valley National Bancorp presently has a consensus price target of $12.60, indicating a potential upside of 9.57%. Capital City Bank Group has a consensus price target of $23.00, indicating a potential downside of 6.73%. Given Valley National Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Valley National Bancorp is more favorable than Capital City Bank Group.
This table compares Valley National Bancorp and Capital City Bank Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Valley National Bancorp||19.91%||8.27%||0.81%|
|Capital City Bank Group||10.35%||5.09%||0.50%|
Insider and Institutional Ownership
62.3% of Valley National Bancorp shares are held by institutional investors. Comparatively, 31.5% of Capital City Bank Group shares are held by institutional investors. 3.1% of Valley National Bancorp shares are held by company insiders. Comparatively, 26.2% of Capital City Bank Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valley National Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 3.8%. Capital City Bank Group pays an annual dividend of $0.28 per share and has a dividend yield of 1.1%. Valley National Bancorp pays out 64.7% of its earnings in the form of a dividend. Capital City Bank Group pays out 33.3% 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 and Valuation
This table compares Valley National Bancorp and Capital City Bank Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Valley National Bancorp||$708.66 million||4.28||$179.50 million||$0.68||16.91|
|Capital City Bank Group||$129.72 million||3.22||$14.25 million||$0.84||29.36|
Valley National Bancorp has higher revenue and earnings than Capital City Bank Group. Valley National 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.
Volatility & Risk
Valley National Bancorp has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Capital City Bank Group has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.
Valley National Bancorp beats Capital City Bank Group on 12 of the 16 factors compared between the two stocks.
About Valley National Bancorp
Valley National Bancorp is the bank holding company for Valley National Bank (the Bank). The Bank provides a range of commercial, retail, insurance and wealth management financial services products. The Company’s segments include Consumer Lending, Commercial Lending, Investment Management, and Corporate and Other Adjustments. The Consumer Lending segment primarily includes residential mortgages, home equity loans and automobile loans. The Commercial Lending segment primarily includes floating rate and adjustable rate commercial and industrial loans, as well as fixed rate owner occupied and commercial real estate loans. The Investment Management segment includes the Company’s investments in various types of securities. As of July 26, 2017, the Bank operated 200 branch locations serving northern and central New Jersey, the New York City boroughs of Manhattan, Brooklyn, Queens and Long Island, and Florida.
About Capital City Bank Group
Capital City Bank Group, Inc. is a financial holding company. The Company provides a range of banking and banking-related services to individual and corporate clients through its subsidiary, Capital City Bank (CCB or the Bank), with banking offices located in Florida, Georgia and Alabama. It operates through commercial banking segment with over four principal services, including Banking Services (CCB), Data Processing Services (Capital City Services Company), Trust and Asset Management Services (Capital City Trust Company) and Brokerage Services (Capital City Banc Investments, Inc.). In addition to its banking subsidiary, the Bank has three subsidiaries, Capital City Trust Company, Capital City Banc Investments, Inc. and Capital City Services Company. As of December 31, 2016, its total loans were $1,572 billion. As of December 31, 2016, the Bank’s total investment securities were $700.1 million. As of December 31, 2016, The Bank’s total deposits are approximately $2.412 million.
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