Critical Analysis: Capital One Financial (NYSE:COF) vs. Nicolet Bankshares (NYSE:NIC)

Nicolet Bankshares (NYSE:NICGet Rating) and Capital One Financial (NYSE:COFGet Rating) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Risk & Volatility

Nicolet Bankshares has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Capital One Financial has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Nicolet Bankshares and Capital One Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nicolet Bankshares 0 0 0 0 N/A
Capital One Financial 1 5 11 0 2.59

Capital One Financial has a consensus price target of $156.93, indicating a potential upside of 55.32%. Given Capital One Financial’s higher probable upside, analysts plainly believe Capital One Financial is more favorable than Nicolet Bankshares.

Earnings and Valuation

This table compares Nicolet Bankshares and Capital One Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nicolet Bankshares $238.92 million 4.17 $60.65 million $5.41 13.74
Capital One Financial $32.03 billion 1.21 $12.39 billion $22.77 4.44

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

Profitability

This table compares Nicolet Bankshares and Capital One Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nicolet Bankshares 26.38% 9.82% 1.12%
Capital One Financial 29.23% 17.07% 2.31%

Insider & Institutional Ownership

42.1% of Nicolet Bankshares shares are held by institutional investors. Comparatively, 88.4% of Capital One Financial shares are held by institutional investors. 13.4% of Nicolet Bankshares shares are held by company insiders. Comparatively, 1.3% of Capital One Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Capital One Financial beats Nicolet Bankshares on 10 of the 13 factors compared between the two stocks.

About Nicolet Bankshares

(Get Rating)

Nicolet Bankshares, Inc. operates as the bank holding company for Nicolet National Bank that provides banking products and services for businesses and individuals. The company accepts checking, savings, and money market accounts; various certificates of deposit; and individual retirement accounts. It also offers commercial loans, including commercial, industrial, and business loans and lines of credit; commercial real estate loans; agricultural (AG) production and AG real estate loans; commercial real estate investment real estate loans; construction and land development loans; residential real estate loans, such as residential first lien and junior lien mortgages, home equity loans, lines of credit, and residential construction loans; and consumer loans. In addition, the company provides cash management, international banking, personal brokerage, safe deposit boxes, and trust and fiduciary services, as well as wealth management and retirement plan services. Further, it offers mortgage refinancing; online services, such as commercial, retail, and trust online banking; automated bill payment, mobile banking deposits and account access, and remote deposit capture services; and other services consisting of wire transfers, debit cards, credit cards, pre-paid gift cards, direct deposits, and official bank checks, as well as facilitates crop insurance products. As of December 31, 2021, it operated 52 branches throughout Wisconsin and Michigan. The company was formerly known as Green Bay Financial Corporation and changed its name to Nicolet Bankshares, Inc. in March 2002. Nicolet Bankshares, Inc. was incorporated in 2000 and is headquartered in Green Bay, Wisconsin.

About Capital One Financial

(Get Rating)

Capital One Financial Corporation operates as the financial services holding company for the Capital One Bank (USA), National Association; and Capital One, National Association, which provides various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company accepts checking accounts, money market deposits, negotiable order of withdrawals, savings deposits, and time deposits. Its loan products include credit card loans; auto and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and treasury management and depository services. It serves consumers, small businesses, and commercial clients through digital channels, branches, caf├ęs, and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and California. Capital One Financial Corporation was founded in 1988 and is headquartered in McLean, Virginia.

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