Bank7 (NASDAQ:BSVN – Get Free Report) and Capital Bancorp (NASDAQ:CBNK – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.
Dividends
Bank7 pays an annual dividend of $1.20 per share and has a dividend yield of 2.2%. Capital Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 1.4%. Bank7 pays out 27.5% of its earnings in the form of a dividend. Capital Bancorp pays out 16.5% 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. Bank7 has raised its dividend for 5 consecutive years and Capital Bancorp has raised its dividend for 3 consecutive years. Bank7 is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares Bank7 and Capital Bancorp”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bank7 | $137.26 million | 3.83 | $43.07 million | $4.37 | 12.63 |
| Capital Bancorp | $310.06 million | 2.03 | $57.17 million | $3.40 | 11.39 |
Capital Bancorp has higher revenue and earnings than Bank7. Capital Bancorp is trading at a lower price-to-earnings ratio than Bank7, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Bank7 has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Capital Bancorp has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Bank7 and Capital Bancorp, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bank7 | 1 | 0 | 3 | 0 | 2.50 |
| Capital Bancorp | 0 | 5 | 2 | 0 | 2.29 |
Bank7 currently has a consensus price target of $61.67, suggesting a potential upside of 11.71%. Capital Bancorp has a consensus price target of $39.67, suggesting a potential upside of 2.44%. Given Bank7’s stronger consensus rating and higher possible upside, research analysts plainly believe Bank7 is more favorable than Capital Bancorp.
Profitability
This table compares Bank7 and Capital Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bank7 | 30.36% | 16.48% | 2.18% |
| Capital Bancorp | 17.47% | 13.14% | 1.46% |
Insider and Institutional Ownership
23.5% of Bank7 shares are held by institutional investors. Comparatively, 56.1% of Capital Bancorp shares are held by institutional investors. 25.7% of Bank7 shares are held by insiders. Comparatively, 33.5% of Capital Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Bank7 beats Capital Bancorp on 12 of the 17 factors compared between the two stocks.
About Bank7
Bank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers. It offers commercial deposit, commercial checking, money market, and other deposit accounts; and retail deposit services, such as certificates of deposit, money market accounts, checking accounts, negotiable order of withdrawal accounts, savings accounts, and automated teller machine access. The company also provides commercial real estate, hospitality, energy, and commercial and industrial lending services; consumer lending services to individuals for personal and household purposes comprising residential real estate loans and mortgage banking services, personal lines of credit, loans for the purchase of automobiles, and other installment loans, as well as secured and unsecured term loans and home improvement loans. It operates through a network of full-service branches in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area, and Kansas. The company was formerly known as Haines Financial Corp. Bank7 Corp. was founded in 1901 and is headquartered in Oklahoma City, Oklahoma.
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.
Receive News & Ratings for Bank7 Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Bank7 and related companies with MarketBeat.com's FREE daily email newsletter.
