Financial Comparison: Capital One Financial (NYSE:COF) and 1st Capital Bank (FISB)

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Capital One Financial (NYSE:COF) and 1st Capital Bank (OTCMKTS:FISB) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Profitability

This table compares Capital One Financial and 1st Capital Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Capital One Financial 11.84% 11.01% 1.50%
1st Capital Bank N/A N/A N/A

Volatility and Risk

Capital One Financial has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, 1st Capital Bank has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.

Institutional & Insider Ownership

88.0% of Capital One Financial shares are held by institutional investors. Comparatively, 5.7% of 1st Capital Bank shares are held by institutional investors. 1.4% of Capital One Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Capital One Financial and 1st Capital Bank, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capital One Financial 1 3 13 0 2.71
1st Capital Bank 0 0 0 0 N/A

Capital One Financial presently has a consensus target price of $108.06, suggesting a potential upside of 34.12%. Given Capital One Financial’s higher probable upside, equities research analysts plainly believe Capital One Financial is more favorable than 1st Capital Bank.

Valuation and Earnings

This table compares Capital One Financial and 1st Capital Bank’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Capital One Financial $30.00 billion 1.27 $1.98 billion $7.79 10.34
1st Capital Bank N/A N/A N/A N/A N/A

Capital One Financial has higher revenue and earnings than 1st Capital Bank.

Dividends

Capital One Financial pays an annual dividend of $1.60 per share and has a dividend yield of 2.0%. 1st Capital Bank does not pay a dividend. Capital One Financial pays out 20.5% of its earnings in the form of a dividend.

Summary

Capital One Financial beats 1st Capital Bank on 10 of the 11 factors compared between the two stocks.

Capital One Financial Company Profile

Capital One Financial Corporation operates as the bank holding company for the Capital One Bank (USA), National Association; and Capital One, National Association, which provides various financial products and services in the United States, the United Kingdom, and Canada. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company offers non-interest-bearing and interest-bearing deposits, such as checking accounts, money market deposit accounts, negotiable order of withdrawals, savings deposits, and time deposits. It also provides credit card loans; auto, home, and retail banking loans; and commercial and multifamily real estate, commercial and industrial, and small-ticket commercial real estate loans. In addition, the company offers credit and debit card products; online direct banking services; and treasury management and depository services. It serves consumers, small businesses, and commercial clients through the Internet and mobile banking, as well as through Cafés, ATMs, and branches located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and the District of Columbia. Capital One Financial Corporation was founded in 1988 and is headquartered in McLean, Virginia.

1st Capital Bank Company Profile

1st Capital Bank provides various banking products and services to businesses, professionals, real estate investors, family commercial entities, and individuals in the central coast region of California. Its deposit products include personal and business checking, savings, money market, and certificates of deposit accounts, as well as individual retirement accounts and health savings accounts. The company also offers business loans and lines of credit, such as long term loans for fixed-asset purchases and permanent working capital, asset-based lines of credit to cover accounts receivables and inventory, short term lines of credit to support short-term seasonal working capital needs or inventory purchases, equipment financing, and acquisition financing; and commercial real estate loans comprising term loans for the purchase or refinance of commercial and multi-family residential properties; and personal loans for business owners. In addition, it provides agriculture and wine industry lending products, including long or short term loans for crops, orchards, winery, and vineyard development; real estate purchases or debt refinancing; machinery and equipment purchase; and building improvements, as well as lines of credit for seasonal needs. Further, the company offers small business administration and government guaranteed lending solutions; debit cards; cash management services that include ACH origination, online wire transfer, check reconciliation, merchant card, and remote deposit capture services; and remote check scanning, remote branch deposit, online banking, telephone banking, courier, electronic bill payment, mobile banking, and remote wire request services, as well as invests in securities. It operates through full service branch offices in Monterey, Salinas, King City, and San Luis Obispo, California. The company was incorporated in 2006 and is based in Salinas, California.

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