Capital Bancorp (NASDAQ:CBNK – Get Free Report) and Western New England Bancorp (NASDAQ:WNEB – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Capital Bancorp and Western New England Bancorp, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Capital Bancorp | 0 | 3 | 3 | 0 | 2.50 |
| Western New England Bancorp | 0 | 3 | 1 | 0 | 2.25 |
Capital Bancorp currently has a consensus target price of $37.33, suggesting a potential upside of 2.99%. Western New England Bancorp has a consensus target price of $15.50, suggesting a potential upside of 12.56%. Given Western New England Bancorp’s higher possible upside, analysts plainly believe Western New England Bancorp is more favorable than Capital Bancorp.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Capital Bancorp | $310.06 million | 1.90 | $57.17 million | $3.40 | 10.66 |
| Western New England Bancorp | $131.13 million | 2.11 | $15.27 million | $0.84 | 16.39 |
Capital Bancorp has higher revenue and earnings than Western New England Bancorp. Capital Bancorp is trading at a lower price-to-earnings ratio than Western New England Bancorp, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Capital Bancorp and Western New England Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Capital Bancorp | 17.47% | 13.14% | 1.46% |
| Western New England Bancorp | 12.43% | 6.78% | 0.61% |
Risk & Volatility
Capital Bancorp has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Western New England Bancorp has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.
Insider & Institutional Ownership
56.1% of Capital Bancorp shares are owned by institutional investors. Comparatively, 67.9% of Western New England Bancorp shares are owned by institutional investors. 33.5% of Capital Bancorp shares are owned by company insiders. Comparatively, 6.6% of Western New England Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Dividends
Capital Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 1.5%. Western New England Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 2.0%. Capital Bancorp pays out 16.5% of its earnings in the form of a dividend. Western New England Bancorp pays out 33.3% 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. Capital Bancorp has increased its dividend for 3 consecutive years.
Summary
Capital Bancorp beats Western New England Bancorp on 11 of the 17 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 Western New England Bancorp
Western New England Bancorp, Inc. operates as the holding company for Westfield Bank that provides a range of commercial and retail banking products and services to individuals and businesses. The company accepts various deposit accounts, including interest-bearing and noninterest-bearing checking, commercial checking, business, nonprofit and municipal checking, savings, money market and sweep, individual retirement, and other savings accounts; time deposits; certificates of deposit; and interest on lawyer's trust accounts. It also offers residential real estate loans, including first mortgages, home equity loans, and home equity lines, and secured by one-to-four family residential properties; commercial and industrial loans, such as letters of credit, revolving lines of credit, working capital, equipment financing, and term loans; commercial mortgage loans; construction and land development loans; home equity loans comprising home equity revolving loans and lines of credit; and consumer loans, including automobile, spa and pool, collateral, and personal lines of credit. In addition, the company provides automated teller machine (ATM), telephone and online banking, remote deposit capture, cash management, overdraft and safe deposit facility, and night deposit services. The company was formerly known as Westfield Financial, Inc. and changed its name to Western New England Bancorp, Inc. in October 2016. The company was founded in 1853 and is headquartered in Westfield, Massachusetts.
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