Comparing Capital Bancorp (NASDAQ:CBNK) & First Us Bancsh (NASDAQ:FUSB)

Capital Bancorp (NASDAQ:CBNK) and First Us Bancsh (NASDAQ:FUSB) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Valuation & Earnings

This table compares Capital Bancorp and First Us Bancsh”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital Bancorp	$310.06 million	2.04	$57.17 million	$3.40	11.45
First Us Bancsh	$62.99 million	1.44	$5.99 million	$1.32	12.53

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Capital Bancorp and First Us Bancsh, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital Bancorp	0	5	2	0	2.29
First Us Bancsh	0	0	0	1	4.00

Capital Bancorp currently has a consensus target price of $39.67, suggesting a potential upside of 1.92%. Given Capital Bancorp’s higher possible upside, analysts clearly believe Capital Bancorp is more favorable than First Us Bancsh.

Volatility and Risk

Capital Bancorp has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, First Us Bancsh has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500.

Institutional & Insider Ownership

56.1% of Capital Bancorp shares are held by institutional investors. Comparatively, 18.7% of First Us Bancsh shares are held by institutional investors. 33.5% of Capital Bancorp shares are held by insiders. Comparatively, 12.1% of First Us Bancsh 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.

Dividends

Capital Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 1.4%. First Us Bancsh pays an annual dividend of $0.28 per share and has a dividend yield of 1.7%. Capital Bancorp pays out 16.5% of its earnings in the form of a dividend. First Us Bancsh pays out 21.2% 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. Capital Bancorp has raised its dividend for 3 consecutive years and First Us Bancsh has raised its dividend for 3 consecutive years.

Profitability

This table compares Capital Bancorp and First Us Bancsh’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capital Bancorp	17.47%	13.14%	1.46%
First Us Bancsh	12.10%	7.41%	0.67%

Summary

Capital Bancorp beats First Us Bancsh on 13 of the 17 factors compared between the two stocks.

About Capital Bancorp

Capital Bancorp, Inc. operates as the bank holding company for Capital Bank, N.A. that provides various banking products and services to businesses, not-for-profit associations, and entrepreneurs in Maryland, Virginia, and the District of Columbia. It operates through Commercial Banking, Capital Bank Home Loans, and OpenSky segments. The company offers a range of deposit products, including checking and savings, time, interest bearing and noninterest-bearing demand, and money market accounts, as well as certificates of deposit; and credit cards. It also originates residential mortgages; issues trust preferred securities; and provides residential and commercial real estate, construction, and commercial and industrial loans, as well as other consumer loans, such as term loans, car loans, and boat loans to small to medium-sized businesses, professionals, real estate investors, and small residential builders and individuals. Capital Bancorp, Inc. was founded in 1974 and is headquartered in Rockville, Maryland.

About First Us Bancsh

First US Bancshares, Inc. operates as the bank holding company for First US Bank that provides commercial banking products and services. The company offers non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. Its loan products include commercial construction, land, and land development loans, including residential housing projects, commercial and industrial development, and for purchase and improvement of raw land for agricultural production; mortgage loans on one-to-four family and multi-family residential properties; real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers, and other commercial properties; commercial and industrial loans and leases; and secured and unsecured personal loans, including automobile loans, loans for household and personal purposes, and other direct consumer installment loans. The company also provides loans secured by collateral in form of personal property items. In addition, it provides letters of credit; and safe deposit box and remote deposit capture services. The company serves small-and medium-sized businesses, property managers, business executives, professionals, and other individuals. The company was formerly known as United Security Bancshares, Inc. and changed its name to First US Bancshares, Inc. in October 2016. First US Bancshares, Inc. was founded in 1952 and is headquartered in Birmingham, Alabama.