Critical Survey: Eagle Financial Services (NASDAQ:EFSI) vs. Capital City Bank Group (NASDAQ:CCBG)

Capital City Bank Group (NASDAQ:CCBG) and Eagle Financial Services (NASDAQ:EFSI) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.

Analyst Recommendations

This is a summary of recent ratings and price targets for Capital City Bank Group and Eagle Financial Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital City Bank Group	0	1	2	0	2.67
Eagle Financial Services	0	2	1	0	2.33

Capital City Bank Group presently has a consensus price target of $45.00, indicating a potential upside of 8.72%. Eagle Financial Services has a consensus price target of $39.50, indicating a potential upside of 9.72%. Given Eagle Financial Services’ higher probable upside, analysts plainly believe Eagle Financial Services is more favorable than Capital City Bank Group.

Profitability

This table compares Capital City Bank Group and Eagle Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capital City Bank Group	21.50%	11.92%	1.39%
Eagle Financial Services	9.30%	10.61%	0.87%

Insider & Institutional Ownership

44.6% of Capital City Bank Group shares are held by institutional investors. Comparatively, 0.3% of Eagle Financial Services shares are held by institutional investors. 19.6% of Capital City Bank Group shares are held by insiders. Comparatively, 8.7% of Eagle Financial Services shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Capital City Bank Group pays an annual dividend of $1.04 per share and has a dividend yield of 2.5%. Eagle Financial Services pays an annual dividend of $1.24 per share and has a dividend yield of 3.4%. Capital City Bank Group pays out 29.1% of its earnings in the form of a dividend. Eagle Financial Services pays out 55.6% 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 City Bank Group has raised its dividend for 11 consecutive years and Eagle Financial Services has raised its dividend for 14 consecutive years. Eagle Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Capital City Bank Group and Eagle Financial Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital City Bank Group	$240.59 million	2.94	$52.92 million	$3.57	11.59
Eagle Financial Services	$63.71 million	3.04	$15.34 million	$2.23	16.14

Capital City Bank Group has higher revenue and earnings than Eagle Financial Services. Capital City Bank Group is trading at a lower price-to-earnings ratio than Eagle Financial Services, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Capital City Bank Group has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Eagle Financial Services has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500.

Summary

Capital City Bank Group beats Eagle Financial Services on 12 of the 17 factors compared between the two stocks.

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.

About Eagle Financial Services

Eagle Financial Services, Inc. operates as the bank holding company for Bank of Clarke County that provides various retail and commercial banking products and services in the Shenandoah Valley and Northern Virginia. The company’s deposit products include checking, NOW, money market, and regular savings accounts; and demand and time deposits. Its loan portfolio comprises one-to-four-family residential real estate, commercial real estate, construction and land development, and commercial and industrial loans, as well as secured and unsecured consumer loans, which include personal installment loans, personal lines of credit, automobile loans, and credit card loans. The company also offers personal and retirement plan services; investment services comprising tax-deferred annuities, IRAs and rollovers, mutual funds, retirement plans, college savings plans, life insurance, long term care insurance, fixed income investing, brokerage CDs, and full service or discount brokerage services; non-deposit investment products; and title insurance products. In addition, it provides ATM and debit cards; and telephone, internet, and mobile banking services, as well as other commercial deposit account services, such as ACH origination and remote deposit capture services. The company operates through twelve full-service branches, two loan production offices, one wealth management office, and one drive-through only facility, as well as 13 ATM locations in the Virginia communities of Berryville, Winchester, Boyce, Stephens City, Purcellville, Warrenton, Leesburg, Ashburn, and Fairfax. Eagle Financial Services, Inc. was founded in 1881 and is headquartered in Berryville, Virginia.