Capital One Financial (NYSE:COF – Get Free Report) and Alerus Financial (NASDAQ:ALRS – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.
Valuation and Earnings
This table compares Capital One Financial and Alerus Financial’s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Capital One Financial | $49.48 billion | 1.09 | $4.89 billion | $12.77 | 11.15 |
Alerus Financial | $164.85 million | 2.39 | $11.70 million | $0.49 | 40.73 |
Capital One Financial has higher revenue and earnings than Alerus Financial. Capital One Financial is trading at a lower price-to-earnings ratio than Alerus Financial, indicating that it is currently the more affordable of the two stocks.
Dividends
Profitability
This table compares Capital One Financial and Alerus Financial’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Capital One Financial | 10.19% | 9.74% | 1.15% |
Alerus Financial | 3.54% | 8.20% | 0.76% |
Institutional and Insider Ownership
89.8% of Capital One Financial shares are owned by institutional investors. Comparatively, 51.3% of Alerus Financial shares are owned by institutional investors. 1.3% of Capital One Financial shares are owned by insiders. Comparatively, 5.6% of Alerus Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Capital One Financial and Alerus Financial, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Capital One Financial | 2 | 11 | 6 | 0 | 2.21 |
Alerus Financial | 0 | 2 | 0 | 0 | 2.00 |
Capital One Financial currently has a consensus price target of $138.50, suggesting a potential downside of 2.75%. Alerus Financial has a consensus price target of $23.50, suggesting a potential upside of 17.74%. Given Alerus Financial’s higher possible upside, analysts plainly believe Alerus Financial is more favorable than Capital One Financial.
Risk and Volatility
Capital One Financial has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, Alerus Financial has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.
Summary
Capital One Financial beats Alerus Financial on 11 of the 17 factors compared between the two stocks.
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.
About Alerus Financial
Alerus Financial Corporation operates as the bank holding company for Alerus Financial, National Association that engages in the provision of various financial services to businesses and consumers. The company operates in four segments: Banking, Mortgage, Retirement and Benefit Services, and Wealth Management. It offers various deposit products, including demand deposits, interest-bearing transaction accounts, money market accounts, time and savings deposits, checking accounts, and certificates of deposit; and treasury management products, including electronic receivables management, remote deposit capture, cash vault services, merchant services, and other cash management services. The company also provides commercial loans, business term loans, lines of credit, and commercial real estate loans, as well as construction and land development loans; consumer lending products, including residential first mortgage loans; installment loans and lines of credit; and second mortgage loans. In addition, it offers retirement plan administration and investment advisory services, employee stock ownership plan, fiduciary services, payroll, health savings accounts, and other benefit services, as well as individual retirement accounts; and financial planning, investment management, personal and corporate trust, estate administration, and custody services. Further, the company provides debit and credit cards, online banking, mobile banking/wallet, payment, private banking, payroll accounts, flex spending accounts, administration, and government health insurance program services. It offers banking services in North Dakota, Minnesota, and Arizona; and retirement and benefit plans through offices located in Michigan, Minnesota, and Colorado. The company was formerly known as First National Bank North Dakota and changed its name to Alerus Financial Corporation in 2000. Alerus Financial Corporation was founded in 1879 and is headquartered in Grand Forks, North Dakota.
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