Financial Survey: 1st Capital Bancorp (OTCMKTS:FISB) versus City (NASDAQ:CHCO)

City (NASDAQ:CHCO) and 1st Capital Bancorp (OTCMKTS:FISB) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Insider and Institutional Ownership

72.4% of City shares are held by institutional investors. Comparatively, 8.1% of 1st Capital Bancorp shares are held by institutional investors. 1.9% of City shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

City has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, 1st Capital Bancorp has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.

Earnings & Valuation

This table compares City and 1st Capital Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
City	$287.36 million	5.92	$117.10 million	$7.98	14.72
1st Capital Bancorp	$41.09 million	1.91	$3.54 million	N/A	N/A

City has higher revenue and earnings than 1st Capital Bancorp.

Profitability

This table compares City and 1st Capital Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
City	30.83%	16.49%	1.83%
1st Capital Bancorp	8.20%	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings for City and 1st Capital Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
City	0	2	0	0	2.00
1st Capital Bancorp	0	0	0	0	0.00

City currently has a consensus target price of $127.50, indicating a potential upside of 8.57%. Given City’s stronger consensus rating and higher probable upside, analysts plainly believe City is more favorable than 1st Capital Bancorp.

Summary

City beats 1st Capital Bancorp on 10 of the 12 factors compared between the two stocks.

About City

City Holding Company operates as a holding company for City National Bank of West Virginia that provides various banking, trust, and investment management, and other financial solutions in the United States. The company offers checking, savings, and money market accounts, as well as certificates of deposit and individual retirement accounts. It also provides commercial and industrial loans that consist of loans to corporate and other legal entity borrowers primarily in small to mid-size industrial and commercial companies; commercial real estate loans comprising commercial mortgages, which are secured by nonresidential and multi-family residential properties; residential real estate loans to consumers for the purchase or refinance of residence; first-priority home equity loans; home equity lines of credit; amortized home equity loans; consumer loans that are secured and unsecured by automobiles, boats, recreational vehicles, certificates of deposit, and other personal property; and demand deposit account overdrafts, as well as owner-occupied real estate and construction, land development, and lines of credit. In addition, the company offers mortgage banking services, including fixed and adjustable-rate mortgages, construction financing, land loans, production of conventional and government-insured mortgages, secondary marketing, and mortgage servicing. Further, it provides deposit services for commercial customers comprising treasury management, lockbox, and other cash management services; merchant credit card services; wealth management, trust, investment, and custodial services for commercial and individual customers; and corporate trust and institutional custody, financial and estate planning, and retirement plan services, as well as automated-teller-machine, interactive-teller-machine, mobile banking, interactive voice response systems, and credit and debit card services. City Holding Company was founded in 1957 and is headquartered in Charleston, West Virginia.

About 1st Capital Bancorp

1st Capital Bancorp operates as the bank holding company for 1st Capital Bank that provides various banking products and services for businesses, professionals, real estate investors, family commercial entities, and individuals in the Central Coast region of California. It offers checking, saving, money market, savings, and certificate of deposit accounts, as well as individual retirement and health savings accounts; and other services including debit cards, check orders, and cannabis banking services. The company also provides lending services, which includes business, agriculture, and wine industry lending; commercial real estate and personal loans; and small business administration loans, and government guaranteed lending solutions. In addition, it offers electronic banking services including online services, such as personal and business online banking; and cash management services comprising ACH origination, online wire transfer, positive pay, merchant card, and remote deposit capture services. The company was founded in 2007 and is headquartered in Salinas, California.