Capital City Bank Group (NASDAQ: CCBG) and Valley National Bancorp (NYSE:VLY) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Capital City Bank Group and Valley National Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capital City Bank Group 1 3 0 0 1.75
Valley National Bancorp 0 5 2 0 2.29

Capital City Bank Group currently has a consensus target price of $23.00, suggesting a potential downside of 5.62%. Valley National Bancorp has a consensus target price of $12.60, suggesting a potential upside of 8.15%. Given Valley National Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Valley National Bancorp is more favorable than Capital City Bank Group.

Profitability

This table compares Capital City Bank Group and Valley National Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Capital City Bank Group 10.35% 5.09% 0.50%
Valley National Bancorp 19.91% 8.27% 0.81%

Risk & Volatility

Capital City Bank Group has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Valley National Bancorp has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Valuation and Earnings

This table compares Capital City Bank Group and Valley National Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Capital City Bank Group $134.84 million 3.07 $11.74 million $0.84 29.01
Valley National Bancorp $870.15 million 3.54 $168.14 million $0.68 17.13

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.

Institutional and Insider Ownership

31.5% of Capital City Bank Group shares are held by institutional investors. Comparatively, 62.3% of Valley National Bancorp shares are held by institutional investors. 26.2% of Capital City Bank Group shares are held by insiders. Comparatively, 3.1% of Valley National Bancorp 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 $0.28 per share and has a dividend yield of 1.1%. 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 out 33.3% of its earnings in the form of a dividend. Valley National Bancorp pays out 64.7% 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.

Summary

Valley National Bancorp beats Capital City Bank Group on 12 of the 16 factors compared between the two stocks.

Capital City Bank Group Company Profile

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.

Valley National Bancorp Company Profile

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.

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