Capital Bancorp (NASDAQ:CBNK) vs. Virginia National Bankshares (NASDAQ:VABK) Head to Head Review

Capital Bancorp (NASDAQ:CBNK) and Virginia National Bankshares (NASDAQ:VABK) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Volatility and Risk

Capital Bancorp has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Virginia National Bankshares has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Dividends

Capital Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 1.5%. Virginia National Bankshares pays an annual dividend of $1.44 per share and has a dividend yield of 3.8%. Capital Bancorp pays out 18.0% of its earnings in the form of a dividend. Virginia National Bankshares pays out 43.5% 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Capital Bancorp and Virginia National Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital Bancorp	0	1	1	0	2.50
Virginia National Bankshares	0	0	0	0	0.00

Capital Bancorp currently has a consensus price target of $37.00, indicating a potential upside of 16.57%. Given Capital Bancorp’s stronger consensus rating and higher possible upside, equities analysts plainly believe Capital Bancorp is more favorable than Virginia National Bankshares.

Profitability

This table compares Capital Bancorp and Virginia National Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capital Bancorp	15.14%	15.54%	1.72%
Virginia National Bankshares	21.39%	10.78%	1.10%

Institutional and Insider Ownership

56.1% of Capital Bancorp shares are held by institutional investors. Comparatively, 37.4% of Virginia National Bankshares shares are held by institutional investors. 31.6% of Capital Bancorp shares are held by insiders. Comparatively, 14.0% of Virginia National Bankshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Capital Bancorp and Virginia National Bankshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital Bancorp	$217.27 million	2.42	$30.97 million	$2.67	11.89
Virginia National Bankshares	$83.52 million	2.46	$16.97 million	$3.31	11.53

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

Summary

Capital Bancorp beats Virginia National Bankshares on 13 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 Virginia National Bankshares

Virginia National Bankshares Corporation operates as the holding company for Virginia National Bank that provides a range of commercial and retail banking services. The company operates through Bank, Sturman Wealth Advisors, VNB Trust and Estate Services, and Masonry Capital segments. It provides checking accounts, demand deposits, NOW accounts, money market deposit accounts, time deposits, certificates of deposit, individual retirement accounts, and other depository services. In addition, the company offers commercial and industrial loans, real estate construction and land loans, commercial real estate loans, and 1-4 family residential mortgages, as well as consumer loans comprising student loans, revolving credit, and other fixed payment loans. Further, it provides automated teller machines, internet banking, treasury, and cash management services; merchant and debit card services; and wealth and investment advisory, and brokerage services. Additionally, the company offers investment management, corporate trustee, trust and estate administration, IRA administration, house investment management, and custody services. It serves individuals, businesses, and charitable organizations in the Charlottesville/Albemarle County, Fauquier County, Manassas, Prince William County, Richmond, and Winchester market areas in Virginia. Virginia National Bankshares Corporation was founded in 1998 and is headquartered in Charlottesville, Virginia.