Analyzing Capital Bancorp (NASDAQ:CBNK) and Rhinebeck Bancorp (NASDAQ:RBKB)

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

Volatility and Risk

Capital Bancorp has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Rhinebeck Bancorp has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Capital Bancorp and Rhinebeck Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital Bancorp	0	3	2	0	2.40
Rhinebeck Bancorp	0	1	0	0	2.00

Capital Bancorp presently has a consensus target price of $34.67, indicating a potential upside of 17.87%. Given Capital Bancorp’s stronger consensus rating and higher probable upside, research analysts plainly believe Capital Bancorp is more favorable than Rhinebeck Bancorp.

Earnings & Valuation

This table compares Capital Bancorp and Rhinebeck Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital Bancorp	$310.06 million	1.57	$57.17 million	$3.40	8.65
Rhinebeck Bancorp	$75.84 million	2.35	$10.05 million	$0.92	17.39

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

Institutional and Insider Ownership

56.1% of Capital Bancorp shares are owned by institutional investors. Comparatively, 23.9% of Rhinebeck Bancorp shares are owned by institutional investors. 31.6% of Capital Bancorp shares are owned by insiders. Comparatively, 5.6% of Rhinebeck Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Capital Bancorp	18.44%	14.76%	1.67%
Rhinebeck Bancorp	13.24%	7.77%	0.78%

Summary

Capital Bancorp beats Rhinebeck Bancorp on 12 of the 14 factors compared between the two stocks.

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.

About Rhinebeck Bancorp

Rhinebeck Bancorp, Inc. operates as the bank holding company for Rhinebeck Bank that provides banking and financial products and services to consumer and commercial customers in the Hudson Valley region of New York. The company offers deposits, including non-interest-bearing demand, interest bearing demand, money market, commercial and personal checking, individual retirement, and saving accounts, as well as certificates of deposit. It also provides direct and indirect automobile loans; non-residential commercial real estate loans; commercial business loans, such as term loans, revolving lines of credit, and lines of credit; residential mortgage and construction, one- to four-family residential real estate, multi-family real estate, commercial construction, and land development loans; and other consumer loans consist of home equity loans and lines of credit. In addition, the company offers retail brokerage and advisory services; life insurance services; and invests in mutual funds, annuities, and other assets. Rhinebeck Bancorp, Inc. was founded in 1860 and is headquartered in Poughkeepsie, New York. Rhinebeck Bancorp, Inc. is a subsidiary of Rhinebeck Bancorp, MHC.