CBB Bancorp (OTCMKTS:CBBI) versus Capital One Financial (NYSE:COF) Head-To-Head Review

CBB Bancorp (OTCMKTS:CBBI) and Capital One Financial (NYSE:COF) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Earnings & Valuation

This table compares CBB Bancorp and Capital One Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CBB Bancorp	$122.69 million	0.91	$22.43 million	$2.12	4.98
Capital One Financial	$53.94 billion	1.42	$4.75 billion	$11.59	17.34

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

Risk & Volatility

CBB Bancorp has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, Capital One Financial has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500.

Institutional and Insider Ownership

89.8% of Capital One Financial shares are owned by institutional investors. 1.3% of Capital One Financial shares are owned by company 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

CBB Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 3.8%. Capital One Financial pays an annual dividend of $2.40 per share and has a dividend yield of 1.2%. CBB Bancorp pays out 18.9% of its earnings in the form of a dividend. Capital One Financial pays out 20.7% 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. CBB Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CBB Bancorp	18.28%	N/A	N/A
Capital One Financial	9.46%	9.45%	1.17%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for CBB Bancorp and Capital One Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CBB Bancorp	0	0	0	0	0.00
Capital One Financial	0	9	9	1	2.58

Capital One Financial has a consensus target price of $196.31, suggesting a potential downside of 2.33%. Given Capital One Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Capital One Financial is more favorable than CBB Bancorp.

Summary

Capital One Financial beats CBB Bancorp on 14 of the 17 factors compared between the two stocks.

About CBB Bancorp

CBB Bancorp, Inc. operates as the holding company for Commonwealth Business Bank that provides various commercial banking products and services to individuals and businesses in the United States. It offers checking, savings, money market, and certification of deposit accounts; SBA lending; business lines of credit; business term loans; business and commercial property loans; construction loans; and credit cards. The company also provides treasury management, and mobile and online banking services, as well as title and escrow services. In addition, it engages in investing activities; and offers trade finance services, including commercial letters of credit, standby letters of credit, and documentary collection services. The company offers its services through full-service and limited-service branches in Southern California, Dallas, Texas and Honolulu, and Hawaii; and loan production offices in the states of Colorado, Georgia, Texas, and Washington. CBB Bancorp, Inc. was founded in 2005 and is headquartered in Los Angeles, California.

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.