Capital Bancorp (NASDAQ:CBNK) and First Seacoast Bancorp (NASDAQ:FSEA) Critical Review

Capital Bancorp (NASDAQ:CBNK) and First Seacoast Bancorp (NASDAQ:FSEA) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Volatility & Risk

Capital Bancorp has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, First Seacoast Bancorp has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500.

Earnings and Valuation

This table compares Capital Bancorp and First Seacoast Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital Bancorp	$310.06 million	1.72	$57.17 million	$3.40	9.60
First Seacoast Bancorp	$28.74 million	1.82	-$850,000.00	($0.24)	-46.50

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

Insider & Institutional Ownership

56.1% of Capital Bancorp shares are held by institutional investors. Comparatively, 38.4% of First Seacoast Bancorp shares are held by institutional investors. 31.6% of Capital Bancorp shares are held by insiders. Comparatively, 7.8% of First Seacoast Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Capital Bancorp and First Seacoast Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capital Bancorp	18.44%	14.56%	1.64%
First Seacoast Bancorp	-2.94%	-1.36%	-0.14%

Analyst Ratings

This is a summary of recent recommendations and price targets for Capital Bancorp and First Seacoast Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital Bancorp	0	2	3	0	2.60
First Seacoast Bancorp	1	0	0	0	1.00

Capital Bancorp presently has a consensus price target of $34.67, suggesting a potential upside of 6.21%. Given Capital Bancorp’s stronger consensus rating and higher possible upside, research analysts plainly believe Capital Bancorp is more favorable than First Seacoast Bancorp.

Summary

Capital Bancorp beats First Seacoast Bancorp on 13 of the 14 factors compared between the two stocks.

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.

About First Seacoast Bancorp

First Seacoast Bancorp, Inc. operates as the holding company for First Seacoast Bank that provides commercial and consumer banking services for individuals and businesses. The company offers interest-bearing and non-interest-bearing checking, savings, and money market accounts, as well as time deposits. It also provides various lending products comprising one- to four-family residential real estate loans; commercial real estate and multi-family real estate loans; acquisition, development, and land loans; commercial and industrial loans; home equity loans and lines of credit; and consumer loans. In addition, the company offers wealth management services, such as retirement planning, portfolio management, investment and insurance strategies, business retirement plans, and college planning services. The company was founded in 1890 and is headquartered in Dover, New Hampshire. First Seacoast Bancorp, Inc. is a subsidiary of First Seacoast Bancorp, MHC.