Reviewing Capital Bancorp (NASDAQ:CBNK) and BV Financial (NASDAQ:BVFL)

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for BV Financial and Capital Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BV Financial	0	0	0	0	0.00
Capital Bancorp	0	1	1	0	2.50

Capital Bancorp has a consensus price target of $37.00, suggesting a potential upside of 11.38%. Given Capital Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Capital Bancorp is more favorable than BV Financial.

Profitability

This table compares BV Financial and Capital Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BV Financial	21.08%	6.59%	1.45%
Capital Bancorp	15.14%	15.54%	1.72%

Institutional & Insider Ownership

42.7% of BV Financial shares are held by institutional investors. Comparatively, 56.1% of Capital Bancorp shares are held by institutional investors. 11.8% of BV Financial shares are held by company insiders. Comparatively, 31.6% of Capital Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares BV Financial and Capital Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BV Financial	$49.20 million	3.35	$11.72 million	$1.03	16.09
Capital Bancorp	$244.71 million	2.25	$30.97 million	$2.67	12.44

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

Volatility and Risk

BV Financial has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, Capital Bancorp has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Summary

Capital Bancorp beats BV Financial on 11 of the 14 factors compared between the two stocks.

About BV Financial

BV Financial, Inc. operates as the holding company for BayVanguard Bank that provides various financial services to individuals and businesses in Maryland. The company offers checking and money market accounts, savings accounts, and certificates of deposits. Its loan products include real estate, home equity, construction, lot, auto, boat, and other personal loans; and commercial lending products, such as commercial equipment/installation, commercial real estate, construction, investment real estate, lines of credit, and SBA loans, as well as loans for short-term real estate purchase, renovation, and sale projects. The company offers ATM, overdraft, safe deposit, bill pay, remote deposit capture, ACH origination, merchant, and online banking services. BV Financial, Inc. was founded in 1873 and is headquartered in Baltimore, Maryland.

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.