Capital City Bank Group (NASDAQ:CCBG) & First National (NASDAQ:FXNC) Head-To-Head Survey

First National (NASDAQ:FXNC) and Capital City Bank Group (NASDAQ:CCBG) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Insider & Institutional Ownership

33.9% of First National shares are held by institutional investors. Comparatively, 44.6% of Capital City Bank Group shares are held by institutional investors. 14.3% of First National shares are held by company insiders. Comparatively, 19.6% of Capital City Bank Group shares are held by company 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.

Profitability

This table compares First National and Capital City Bank Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First National	15.19%	11.01%	0.94%
Capital City Bank Group	21.47%	11.69%	1.40%

Risk & Volatility

First National has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, Capital City Bank Group has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.

Dividends

First National pays an annual dividend of $0.68 per share and has a dividend yield of 2.6%. Capital City Bank Group pays an annual dividend of $1.04 per share and has a dividend yield of 2.4%. First National pays out 34.5% of its earnings in the form of a dividend. Capital City Bank Group pays out 28.9% 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. First National has raised its dividend for 10 consecutive years and Capital City Bank Group has raised its dividend for 11 consecutive years.

Analyst Ratings

This is a summary of recent ratings for First National and Capital City Bank Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First National	0	1	0	0	2.00
Capital City Bank Group	0	2	1	0	2.33

Capital City Bank Group has a consensus price target of $45.00, indicating a potential upside of 4.51%. Given Capital City Bank Group’s stronger consensus rating and higher probable upside, analysts clearly believe Capital City Bank Group is more favorable than First National.

Earnings and Valuation

This table compares First National and Capital City Bank Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First National	$116.51 million	2.06	$17.70 million	$1.97	13.52
Capital City Bank Group	$286.74 million	2.58	$61.56 million	$3.60	11.96

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

Summary

Capital City Bank Group beats First National on 14 of the 17 factors compared between the two stocks.

About First National

First National Corporation operates as the bank holding company for First Bank that provides various commercial banking services to small and medium-sized businesses, individuals, estates, local governmental entities, and non-profit organizations in Virginia. The company's deposit products include checking, savings, money market, and individual retirement accounts, as well as certificates of deposit and treasury management solutions. Its loan products comprise construction loans, including residential, land acquisition, and development loans; 1-4 family residential real estate loans; and commercial real estate loans that are secured by commercial real estate, including multi-family residential buildings, office and retail buildings, hotels, industrial buildings, and religious facilities. In addition, the company's loan products include commercial and industrial loans that are secured by business assets, such as accounts receivable, equipment, and inventory; home equity loans; and secured and unsecured consumer loans, such as lines of credit, automobile loans, deposit account loans, and installment and demand loans. Further, it provides wealth management services, including estate planning, investment management of assets, trustee under an agreement, trustee under a will, and estate settlement. Additionally, the company offers title insurance and investment services; and holds other real estate owned and office sites, as well as provides internet and mobile banking, remote deposit capture, and other traditional banking services. First National Corporation was founded in 1907 and is headquartered in Strasburg, Virginia.

About Capital City Bank Group

Capital City Bank Group, Inc. operates as the financial holding company for Capital City Bank that provides a range of banking- related services to individual and corporate clients. The company offers financing for commercial business properties, equipment, inventories, and accounts receivable, as well as commercial leasing and letters of credit; treasury management services; and merchant credit card transaction processing services. It also provides commercial and residential real estate lending products, as well as fixed and adjustable-rate residential mortgage loans; personal, automobile, boat/RV, and home equity loans; and credit card programs. In addition, the company offers institutional banking services, including customized checking and savings accounts, cash management systems, tax-exempt loans, lines of credit, and term loans to meet the needs of state and local governments, public schools and colleges, charities, membership, and not-for-profit associations. Further, it provides consumer banking services comprising checking accounts, savings programs, interactive/automated teller machines, debit/credit cards, night deposit services, safe deposit facilities, and online and mobile banking services. Additionally, the company provides asset management for individuals through agency, personal trust, IRA, and personal investment management accounts; and various retail securities products, such as the U.S. government bonds, tax-free municipal bonds, stocks, mutual funds, unit investment trusts, annuities, life insurance, and long-term health care, as well as business, estate, financial, insurance and business planning, tax planning, and asset protection advisory services. Capital City Bank Group, Inc. was founded in 1895 and is headquartered in Tallahassee, Florida.