Hilltop (NYSE:HTH – Get Free Report) and Capital City Bank Group (NASDAQ:CCBG – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.
Risk & Volatility
Hilltop has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Capital City Bank Group has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for Hilltop and Capital City Bank Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hilltop | 0 | 2 | 1 | 1 | 2.75 |
| Capital City Bank Group | 0 | 3 | 1 | 0 | 2.25 |
Institutional and Insider Ownership
57.1% of Hilltop shares are owned by institutional investors. Comparatively, 44.6% of Capital City Bank Group shares are owned by institutional investors. 29.9% of Hilltop shares are owned by insiders. Comparatively, 19.8% of Capital City Bank Group shares are owned 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 Hilltop and Capital City Bank Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hilltop | 10.13% | 7.32% | 1.03% |
| Capital City Bank Group | 21.01% | 11.10% | 1.38% |
Dividends
Hilltop pays an annual dividend of $0.80 per share and has a dividend yield of 2.1%. Capital City Bank Group pays an annual dividend of $1.08 per share and has a dividend yield of 2.3%. Hilltop pays out 30.3% of its earnings in the form of a dividend. Capital City Bank Group pays out 30.6% 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. Hilltop has raised its dividend for 8 consecutive years and Capital City Bank Group has raised its dividend for 11 consecutive years. Capital City Bank Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Hilltop and Capital City Bank Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hilltop | $1.63 billion | 1.37 | $165.59 million | $2.64 | 14.38 |
| Capital City Bank Group | $286.74 million | 2.78 | $61.56 million | $3.53 | 13.22 |
Hilltop has higher revenue and earnings than Capital City Bank Group. Capital City Bank Group is trading at a lower price-to-earnings ratio than Hilltop, indicating that it is currently the more affordable of the two stocks.
Summary
Hilltop beats Capital City Bank Group on 9 of the 17 factors compared between the two stocks.
About Hilltop
Hilltop Holdings Inc. provides business and consumer banking services. It operates through three segments: Banking, Broker-Dealer, and Mortgage Origination. The Banking segment offers savings, checking, interest-bearing checking, and money market accounts; certificates of deposit; lines and letters of credit, home improvement and equity loans, loans for purchasing and carrying securities, term, agricultural and commercial real estate, equipment loans, and other lending products; and mortgage, commercial and industrial loans, and term and construction finance. It also provides treasury management, asset management, check cards, safe deposit boxes, online banking, bill pay, and overdraft privilege services; and estate planning, management and administration, investment portfolio management, employee benefit accounts, and individual retirement accounts services, as well as automated teller machines. The Broker-Dealer segment offers public finance services that assist public entities in originating, syndicating, and distributing securities of municipalities and political subdivisions; specialized advisory and investment banking services; advice and guidance to arbitrage rebate compliance, portfolio management, and local government investment pool administration; advisory services and products for derivatives and commodities; agricultural insurance; and sells, trades in, and underwrites U.S. government and government agency bonds, corporate bonds, and municipal bonds; mortgage-backed, asset-backed, and commercial mortgage-backed securities and structured products; and provides asset and liability management advisory, clearing, retail, and securities lending services. The Mortgage Origination segment offers fixed and adjustable rate mortgages, jumbo, new construction, Federal Housing Administration, Veterans Affairs, and United States Department of Agriculture loans. Hilltop Holdings Inc. was incorporated in 1998 and is based in Dallas, Texas.
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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