Community Capital Bancshares (OTCMKTS:ALBY – Get Free Report) and Popular (NASDAQ:BPOP – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.
Institutional and Insider Ownership
87.3% of Popular shares are owned by institutional investors. 42.4% of Community Capital Bancshares shares are owned by insiders. Comparatively, 2.2% of Popular shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Community Capital Bancshares and Popular’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Community Capital Bancshares | N/A | N/A | N/A |
| Popular | 18.75% | 13.70% | 1.10% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Community Capital Bancshares | $15.03 million | 2.55 | $4.90 million | $3.78 | 7.80 |
| Popular | $4.44 billion | 1.93 | $833.16 million | $12.32 | 10.67 |
Popular has higher revenue and earnings than Community Capital Bancshares. Community Capital Bancshares is trading at a lower price-to-earnings ratio than Popular, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Community Capital Bancshares has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, Popular has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.
Dividends
Community Capital Bancshares pays an annual dividend of $2.00 per share and has a dividend yield of 6.8%. Popular pays an annual dividend of $3.00 per share and has a dividend yield of 2.3%. Community Capital Bancshares pays out 52.9% of its earnings in the form of a dividend. Popular pays out 24.4% 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. Popular has raised its dividend for 6 consecutive years.
Analyst Recommendations
This is a breakdown of current recommendations for Community Capital Bancshares and Popular, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Community Capital Bancshares | 0 | 0 | 0 | 0 | 0.00 |
| Popular | 0 | 1 | 10 | 1 | 3.00 |
Popular has a consensus price target of $156.55, indicating a potential upside of 19.10%. Given Popular’s stronger consensus rating and higher probable upside, analysts clearly believe Popular is more favorable than Community Capital Bancshares.
Summary
Popular beats Community Capital Bancshares on 15 of the 18 factors compared between the two stocks.
About Community Capital Bancshares
Community Capital Bancshares, Inc. operates as the holding company for AB&T that provides various banking products and services to individual and corporate customers. The company accepts various deposit products, such as checking, savings, money market, and individual retirement accounts, as well as certificates of deposits. Its loan products include commercial and residential real estate, commercial, financial, agricultural, consumer installment, overdrafts and other revolving credit, and educational loans. The company also offers money transfer, bill pay, remote deposit capture, ACH origination, and merchant services, as well as online, mobile, and text message banking services. The company was incorporated in 1998 and is based in Albany, Georgia.
About Popular
Popular, Inc., through its subsidiaries, provides various retail, mortgage, and commercial banking products and services in Puerto Rico, the United States, and the British Virgin Islands. The company provides savings, NOW, money market, and other interest-bearing demand accounts; non-interest bearing demand deposits; and certificates of deposit. It also offers commercial and industrial, commercial multi-family, commercial real estate, and residential mortgage loans; consumer loans, including personal loans, credit cards, automobile loans, home equity lines of credit, and other loans to individual borrowers; construction loans; and lease financing comprising automobile loans/leases. In addition, the company provides investment banking, auto and equipment leasing and financing, broker-dealer, and insurance services; debit cards; and online banking services. Popular, Inc. was founded in 1893 and is headquartered in Hato Rey, Puerto Rico.
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