Head-To-Head Analysis: Citizens & Northern (NASDAQ:CZNC) vs. Capital Bancorp (NASDAQ:CBNK)

Citizens & Northern (NASDAQ:CZNC) and Capital Bancorp (NASDAQ:CBNK) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Dividends

Citizens & Northern pays an annual dividend of $1.12 per share and has a dividend yield of 4.4%. Capital Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 1.5%. Citizens & Northern pays out 75.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Capital Bancorp pays out 16.5% of its earnings in the form of a dividend. Capital Bancorp has increased its dividend for 3 consecutive years.

Profitability

This table compares Citizens & Northern and Capital Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Citizens & Northern	13.28%	9.54%	1.04%
Capital Bancorp	17.47%	13.14%	1.46%

Earnings and Valuation

This table compares Citizens & Northern and Capital Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Citizens & Northern	$140.31 million	3.29	$23.43 million	$1.48	17.38
Capital Bancorp	$310.06 million	1.90	$57.17 million	$3.40	10.64

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

Volatility and Risk

Citizens & Northern has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, Capital Bancorp has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Citizens & Northern and Capital Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Citizens & Northern	0	3	1	0	2.25
Capital Bancorp	0	3	3	0	2.50

Citizens & Northern presently has a consensus target price of $23.50, suggesting a potential downside of 8.65%. Capital Bancorp has a consensus target price of $37.33, suggesting a potential upside of 3.17%. Given Capital Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Capital Bancorp is more favorable than Citizens & Northern.

Insider & Institutional Ownership

30.8% of Citizens & Northern shares are owned by institutional investors. Comparatively, 56.1% of Capital Bancorp shares are owned by institutional investors. 4.7% of Citizens & Northern shares are owned by company insiders. Comparatively, 33.5% of Capital Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Capital Bancorp beats Citizens & Northern on 14 of the 17 factors compared between the two stocks.

About Citizens & Northern

Citizens & Northern Corp. is a holding company, which engages in community banking. It provides a full range of banking and mortgage services to individual and corporate customers in North Central Pennsylvania and Southern New York State. The firm’s lending products include mortgage loans, commercial loans, and consumer loans. Its deposit products include various types of checking accounts, passbook and statement savings, money market accounts, interest checking accounts, individual retirement accounts, and certificates of deposit. The company was founded in 1864 and is headquartered in Wellsboro, PA.

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.