United Security Bancshares (NASDAQ:UBFO – Get Free Report) and Capital City Bank Group (NASDAQ:CCBG – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.
Profitability
This table compares United Security Bancshares and Capital City Bank Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United Security Bancshares | 18.65% | 9.03% | 1.01% |
| Capital City Bank Group | 21.37% | 11.11% | 1.40% |
Analyst Ratings
This is a breakdown of current ratings and target prices for United Security Bancshares and Capital City Bank Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Security Bancshares | 0 | 0 | 1 | 0 | 3.00 |
| Capital City Bank Group | 0 | 3 | 1 | 0 | 2.25 |
Capital City Bank Group has a consensus price target of $51.75, suggesting a potential upside of 5.44%. Given Capital City Bank Group’s higher possible upside, analysts clearly believe Capital City Bank Group is more favorable than United Security Bancshares.
Dividends
United Security Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 4.6%. Capital City Bank Group pays an annual dividend of $1.08 per share and has a dividend yield of 2.2%. United Security Bancshares pays out 67.6% of its earnings in the form of a dividend. Capital City Bank Group pays out 30.0% 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. United Security Bancshares has increased its dividend for 2 consecutive years and Capital City Bank Group has increased its dividend for 11 consecutive years.
Volatility and Risk
United Security Bancshares has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, Capital City Bank Group has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.
Valuation & Earnings
This table compares United Security Bancshares and Capital City Bank Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United Security Bancshares | $53.51 million | 3.39 | $12.29 million | $0.71 | 14.80 |
| Capital City Bank Group | $286.74 million | 2.93 | $61.56 million | $3.60 | 13.63 |
Capital City Bank Group has higher revenue and earnings than United Security Bancshares. Capital City Bank Group is trading at a lower price-to-earnings ratio than United Security Bancshares, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
30.9% of United Security Bancshares shares are owned by institutional investors. Comparatively, 44.6% of Capital City Bank Group shares are owned by institutional investors. 22.1% of United Security Bancshares shares are owned by company insiders. Comparatively, 19.8% of Capital City Bank Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Capital City Bank Group beats United Security Bancshares on 11 of the 16 factors compared between the two stocks.
About United Security Bancshares
United Security Bancshares operates as the bank holding company for United Security Bank, a state-chartered bank that provides a range of commercial banking services to the business and professional community, and individuals in California. The company accepts various deposit products, including personal and business checking accounts, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit. It also provides real estate mortgage, commercial and industrial, real estate construction and development, and consumer loans, as well as agricultural, installment, and student loans. In addition, the company offers online and mobile banking, safe deposit boxes, wire transfers, payroll direct deposit, cashier's check, cash management, and foreign draft services, as well as interactive teller machines; and person-to-person and bank-to-bank transfers for consumer customers. United Security Bancshares was founded in 1987 and is headquartered in Fresno, California.
About Capital City Bank Group
Capital City Bank Group, Inc. operates as the financial holding company for Capital City Bank that provides a range of banking- related services to individual and corporate clients. The company 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. It also provides commercial and residential real estate lending products, as well as fixed and adjustable-rate residential mortgage loans; personal, automobile, boat/RV, and home equity loans; and credit card programs. In addition, the company offers 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. Further, it provides consumer banking services comprising checking accounts, savings programs, interactive/automated teller machines, debit/credit cards, night deposit services, safe deposit facilities, and online and mobile banking services. Additionally, the company provides asset management for individuals through agency, personal trust, IRA, and personal investment management accounts; and various retail securities products, such as the U.S. government bonds, tax-free municipal bonds, stocks, mutual funds, unit investment trusts, annuities, life insurance, and long-term health care, as well as business, estate, financial, insurance and business planning, tax planning, and asset protection advisory services. Capital City Bank Group, Inc. was founded in 1895 and is headquartered in Tallahassee, Florida.
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