Contrasting Hope Bancorp (NASDAQ:HOPE) & Community Capital Bancshares (OTCMKTS:ALBY)

Community Capital Bancshares (OTCMKTS:ALBY) and Hope Bancorp (NASDAQ:HOPE) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Volatility & Risk

Community Capital Bancshares has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Hope Bancorp has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.

Valuation & Earnings

This table compares Community Capital Bancshares and Hope Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Capital Bancshares	N/A	N/A	N/A	N/A	N/A
Hope Bancorp	$519.14 million	2.84	$133.67 million	$1.00	12.24

Hope Bancorp has higher revenue and earnings than Community Capital Bancshares.

Analyst Ratings

This is a summary of recent ratings and price targets for Community Capital Bancshares and Hope Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Capital Bancshares	0	0	0	0	N/A
Hope Bancorp	0	2	1	0	2.33

Hope Bancorp has a consensus target price of $12.50, indicating a potential upside of 2.12%. Given Hope Bancorp’s higher probable upside, analysts plainly believe Hope Bancorp is more favorable than Community Capital Bancshares.

Dividends

Community Capital Bancshares pays an annual dividend of $0.75 per share and has a dividend yield of 4.1%. Hope Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 4.6%. Hope Bancorp pays out 56.0% of its earnings in the form of a dividend.

Institutional and Insider Ownership

84.0% of Hope Bancorp shares are held by institutional investors. 42.4% of Community Capital Bancshares shares are held by company insiders. Comparatively, 5.3% of Hope Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Community Capital Bancshares and Hope Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Capital Bancshares	N/A	N/A	N/A
Hope Bancorp	10.02%	5.85%	0.66%

Summary

Hope Bancorp beats Community Capital Bancshares on 9 of the 11 factors compared between the two stocks.

About Community Capital Bancshares

Community Capital Bancshares, Inc. operates as the holding company for AB&T that provides various banking products and services to individual and corporate customers. The company accepts various deposit products, such as checking, savings, money market, and individual retirement accounts, as well as certificates of deposits. Its loan products include commercial and residential real estate, commercial, financial, agricultural, consumer installment, overdrafts and other revolving credit, and educational loans. The company also offers money transfer, bill pay, remote deposit capture, ACH origination, and merchant services, as well as online, mobile, and text message banking services. The company was incorporated in 1998 and is based in Albany, Georgia.

About Hope Bancorp

Hope Bancorp, Inc. operates as the bank holding company for Bank of Hope that provides retail and commercial banking services for businesses and individuals in the United States. It accepts personal and business checking, money market, savings, time deposit, and individual retirement accounts. The company also offers loans comprising commercial and industrial loans to businesses for various purposes, such as working capital, purchasing inventory, debt refinancing, business acquisitions, international trade finance, other business-related financing, and loans syndication services; commercial real estate loans; residential mortgage loans; small business administration loans; and consumer loans, such as single-family mortgage, home equity, automobile, credit card, and personal loans. In addition, it provides internet banking and bill-pay, remote deposit capture, lock box, and ACH origination services; treasury management services; foreign currency exchange transactions; interest rate contracts and wealth management services; automated teller machine services; and engages in investment activities. Hope Bancorp, Inc. was founded in 1986 and is headquartered in Los Angeles, California.