Thomasville Bancshares (OTCMKTS:THVB) vs. Capital Bancorp (NASDAQ:CBNK) Critical Analysis

Thomasville Bancshares (OTCMKTS:THVB) and Capital Bancorp (NASDAQ:CBNK) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

56.1% of Capital Bancorp shares are held by institutional investors. 32.5% of Capital Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Thomasville Bancshares and Capital Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thomasville Bancshares	$109.70 million	4.32	$33.55 million	N/A	N/A
Capital Bancorp	$183.73 million	2.37	$30.97 million	$2.13	12.26

Thomasville Bancshares has higher earnings, but lower revenue than Capital Bancorp.

Analyst Recommendations

This is a summary of recent ratings and price targets for Thomasville Bancshares and Capital Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thomasville Bancshares	0	0	0	0	0.00
Capital Bancorp	0	1	1	0	2.50

Capital Bancorp has a consensus target price of $34.50, suggesting a potential upside of 32.13%. Given Capital Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Capital Bancorp is more favorable than Thomasville Bancshares.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Thomasville Bancshares	N/A	N/A	N/A
Capital Bancorp	12.66%	14.89%	1.64%

Dividends

Thomasville Bancshares pays an annual dividend of $2.50 per share and has a dividend yield of 3.3%. Capital Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. Capital Bancorp pays out 18.8% of its earnings in the form of a dividend.

Volatility & Risk

Thomasville Bancshares has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500. Comparatively, Capital Bancorp has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Summary

Capital Bancorp beats Thomasville Bancshares on 10 of the 14 factors compared between the two stocks.

About Thomasville Bancshares

Thomasville Bancshares, Inc. operates as the bank holding company for Thomasville National Bank that provides a range of banking services to individual and corporate customers primarily in Thomas and Glynn counties, Georgia, Leon County, Florida, and the surrounding counties. The company offers checking and savings accounts; money market accounts; and certificates of deposits. It also provides commercial real estate mortgage loans, such as non-farm and non-residential commercial real estate loans, construction loans for commercial businesses, multifamily loans secured by income producing properties, and farmland; and 1-4 family residential loans, including first mortgage liens, junior liens, and home equity lines. In addition, the company offers commercial, financial, and agricultural loans; consumer loans comprising direct consumer instalment loans, overdrafts, and other revolving credit loans and educational loans; and loans to municipalities and development authorities. Further, it provides trust and money management services. The company was incorporated in 1995 and is based in Thomasville, Georgia.

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.