Head-To-Head Survey: Capital Bancorp (CBNK) vs. The Competition

Capital Bancorp (NASDAQ:CBNK) is one of 919 publicly-traded companies in the “Banks” industry, but how does it contrast to its rivals? We will compare Capital Bancorp to similar companies based on the strength of its profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Risk & Volatility

Capital Bancorp has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, Capital Bancorp’s rivals have a beta of 0.61, indicating that their average share price is 39% less volatile than the S&P 500.

Dividends

Capital Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 1.3%. Capital Bancorp pays out 16.9% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.0% and pay out 28.9% of their earnings in the form of a dividend. Capital Bancorp has increased its dividend for 3 consecutive years.

Profitability

This table compares Capital Bancorp and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capital Bancorp	16.29%	13.63%	1.49%
Capital Bancorp Competitors	15.65%	9.43%	0.93%

Institutional and Insider Ownership

56.1% of Capital Bancorp shares are held by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are held by institutional investors. 33.5% of Capital Bancorp shares are held by company insiders. Comparatively, 9.7% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Capital Bancorp and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital Bancorp	0	6	1	0	2.14
Capital Bancorp Competitors	7490	30232	27828	1480	2.35

Capital Bancorp currently has a consensus target price of $41.00, suggesting a potential downside of 3.26%. As a group, “Banks” companies have a potential upside of 14.79%. Given Capital Bancorp’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Capital Bancorp has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Capital Bancorp and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Capital Bancorp	$310.06 million	$57.17 million	12.80
Capital Bancorp Competitors	$9.95 billion	$2.42 billion	21.39

Capital Bancorp’s rivals have higher revenue and earnings than Capital Bancorp. Capital Bancorp is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Capital Bancorp rivals beat Capital Bancorp on 9 of the 15 factors compared.

About Capital Bancorp

Capital Bancorp, Inc. is a bank holding company headquartered in Rockville, Maryland. Through its principal subsidiary, Capital Bank, N.A., the company provides commercial banking products and services to businesses, professionals and individuals. Capital Bank offers business and commercial real estate lending, construction and development financing, residential mortgage lending, small-business lending, consumer loans and deposit accounts. Its services also include cash management, online and mobile banking, treasury management and other financial solutions designed for commercial and retail customers.