Independent Bank Group (NASDAQ:IBTX) and Capital City Bank Group (NASDAQ:CCBG) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.
Earnings and Valuation
This table compares Independent Bank Group and Capital City Bank Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Independent Bank Group||$349.20 million||5.87||$76.51 million||$3.45||19.50|
|Capital City Bank Group||$138.68 million||2.90||$10.86 million||$0.88||26.77|
Independent Bank Group has higher revenue and earnings than Capital City Bank Group. Independent Bank Group is trading at a lower price-to-earnings ratio than Capital City Bank Group, indicating that it is currently the more affordable of the two stocks.
This table compares Independent Bank Group and Capital City Bank Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Independent Bank Group||25.16%||8.10%||1.23%|
|Capital City Bank Group||11.38%||6.55%||0.66%|
Independent Bank Group pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. Capital City Bank Group pays an annual dividend of $0.36 per share and has a dividend yield of 1.5%. Independent Bank Group pays out 16.2% of its earnings in the form of a dividend. Capital City Bank Group pays out 40.9% 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. Independent Bank Group has increased its dividend for 4 consecutive years.
Insider & Institutional Ownership
57.2% of Independent Bank Group shares are held by institutional investors. Comparatively, 37.3% of Capital City Bank Group shares are held by institutional investors. 10.9% of Independent Bank Group shares are held by insiders. Comparatively, 24.3% of Capital City Bank Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Independent Bank Group has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Capital City Bank Group has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Independent Bank Group and Capital City Bank Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Independent Bank Group||0||1||4||1||3.00|
|Capital City Bank Group||0||3||1||0||2.25|
Independent Bank Group presently has a consensus price target of $80.50, suggesting a potential upside of 19.67%. Capital City Bank Group has a consensus price target of $27.00, suggesting a potential upside of 14.60%. Given Independent Bank Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Independent Bank Group is more favorable than Capital City Bank Group.
Independent Bank Group beats Capital City Bank Group on 15 of the 18 factors compared between the two stocks.
About Independent Bank Group
Independent Bank Group, Inc. operates as the bank holding company for Independent Bank that provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products, including checking and savings accounts, demand accounts, money market accounts, and certificates of deposit, as well as individual retirement accounts. The company also provides commercial real estate loans; commercial construction, land, and land development loans; residential real estate loans; single family interim construction loans; commercial loans comprising SBA guaranteed loans, business term loans, equipment financing, and lines of credit and energy related loans; agricultural loans for farmers and ranchers; consumer loans, such as installment loans comprising loans to purchase cars, boats, and other recreational vehicles; and residential mortgages. In addition, it offers debit cards, online banking, mobile banking, eStatements, bank-by-mail, and direct deposit services; and business accounts and management services, including analyzed business checking, business savings, and treasury management services. As of September 13, 2018, the company operated 74 banking offices locations that extend from the Gulf Coast of Texas to the Rocky Mountains. Independent Bank Group, Inc. was founded in 2002 and is headquartered in McKinney, Texas.
About Capital City Bank Group
Capital City Bank Group, Inc. operates as the bank holding company for Capital City Bank that provides a range of banking and banking-related services to individual and corporate clients in Florida, Georgia, and Alabama. It offers financing for commercial business properties, equipment, inventories, and accounts receivable, as well as commercial leasing and letters of credit; treasury management services; and merchant credit card transaction processing services. The company also provides commercial and residential real estate lending products, as well as fixed-rate and adjustable rate residential mortgage loans; retail credit products, such as personal loans, automobile loans, boat/RV loans, home equity loans, and credit card programs; and institutional banking services, including customized checking and savings accounts, cash management systems, tax-exempt loans, lines of credit, and term loans to meet the needs of state and local governments, public schools and colleges, charities, membership, and not-for-profit associations. Its consumer banking services include checking accounts, savings programs, automated teller machines, debit/credit cards, night deposit services, safe deposit facilities, online banking, and mobile banking. In addition, the company provides asset management for individuals through agency, personal trust, IRA, and personal investment management accounts; and offers access to retail securities products, including the U.S. Government bonds, tax-free municipal bonds, stocks, mutual funds, unit investment trusts, annuities, life insurance, and long-term health care. As of February 28, 2018, it had 59 banking offices. Capital City Bank Group, Inc. was founded in 1895 and is headquartered in Tallahassee, Florida.
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