Critical comparison between Bank First (NASDAQ:BFC) and Capital Bancorp (NASDAQ:CBNK)


Bank first (NASDAQ: BFCGet a rating) and Capital Bancorp (NASDAQ: CBNKGet a rating) are both small-cap financial companies, but which stock is better? We’ll compare the two companies based on their risk strength, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

26.3% of Bank First shares are held by institutional investors. By comparison, 46.4% of Capital Bancorp’s shares are held by institutional investors. 7.6% of Bank First shares are held by insiders of the company. By comparison, 33.1% of Capital Bancorp’s shares are held by insiders of the company. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a company will outperform the market over the long term.

Dividends

Bank First pays an annual dividend of $0.88 per share and has a dividend yield of 1.1%. Capital Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Bank First pays 15.3% of its profits as a dividend. Capital Bancorp pays out 6.9% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Bank First has increased its dividend for 2 consecutive years. Bank First is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.

Valuation and benefits

This chart compares gross revenue, earnings per share (EPS), and valuation of Bank First and Capital Bancorp.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Bank first $121.90 million 4.78 $45.44 million $5.76 1:47 p.m.
capital bank $173.88 million 1.73 $39.98 million $2.89 7.45

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

Analyst Recommendations

This is a summary of the current ratings and recommendations for Bank First and Capital Bancorp, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Bank first 0 0 1 0 3.00
capital bank 0 0 0 0 N / A

Bank First currently has a consensus price target of $84.00, suggesting a potential upside of 8.30%. Given Bank First’s possible higher upside, research analysts clearly believe that Bank First is more favorable than Capital Bancorp.

Profitability

This table compares the net margins, return on equity and return on assets of Bank First and Capital Bancorp.

Net margins Return on equity return on assets
Bank first 36.55% 13.92% 1.53%
capital bank 23.42% 20.73% 1.87%

Volatility and risk

Bank First has a beta of 0.35, which means its stock price is 65% less volatile than the S&P 500. In comparison, Capital Bancorp has a beta of 0.42, which means its stock price is 58% less volatile than the S&P 500.

Summary

Bank First beat Capital Bancorp on 9 out of 16 factors compared between the two stocks.

Bank First Company Profile (Get a rating)

Bank First Corporation operates as a holding company for Bank First NA which provides consumer and commercial financial services to Wisconsin businesses, professionals, consumers, associations, individuals and government authorities. The company offers checking, savings, money market, cash management, retirement and health savings accounts; other term deposits; certificates of deposit; and residential mortgage products. It also provides credit cards; ATM processing; Insurance; data processing and other information technologies; investment and custody; finance management; and online, telephone and mobile banking. The Company’s lending products include real estate loans, including commercial real estate loans, residential mortgages and home equity loans; commercial and industrial loans for working capital, accounts receivable, inventory financing and other business purposes; construction and development loans; residential loans for 1 to 4 families; and consumer loans for personal and household purposes, including secured and unsecured installment loans and revolving lines of credit. It operates through 21 offices in Manitowoc, Outagamie, Brown, Winnebago, Sheboygan, Waupaca, Ozaukee, Monroe and Jefferson counties in Wisconsin. The company was formerly known as Bank First National Corporation and changed its name to Bank First Corporation in June 2019. Bank First Corporation was founded in 1894 and is headquartered in Manitowoc, Wisconsin.

Capital Bancorp Company Profile (Get a rating)

Capital Bancorp, Inc. operates as a bank holding company for Capital Bank, NA which provides various banking products and services to businesses, nonprofits, and entrepreneurs in the United States. It operates through Commercial Banking, Capital Bank Home Loans and OpenSky segments. The Company offers a range of deposit products and services, including checking and savings accounts, term, interest-bearing demand and money market accounts, and certificates of deposit; and credit cards. It issues residential mortgage loans and offers residential and commercial real estate loans, construction loans and commercial loans, as well as other consumer loans, such as term loans, auto loans and boat loans to small and medium enterprises, professionals, real estate investors. , and small home builders and individuals. It operates through four commercial bank branches, four mortgage offices and a loan origination office. The company was founded in 1974 and is based in Rockville, Maryland.



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