Analyzing Capital City Bank Group (NASDAQ:CCBG) and CoastalSouth Bancshares (NYSE:COSO)

Capital City Bank Group (NASDAQ:CCBG) and CoastalSouth Bancshares (NYSE:COSO) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Volatility and Risk

Capital City Bank Group has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, CoastalSouth Bancshares has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500.

Valuation and Earnings

This table compares Capital City Bank Group and CoastalSouth Bancshares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital City Bank Group	$286.74 million	3.03	$61.56 million	$3.66	13.88
CoastalSouth Bancshares	$135.78 million	2.46	$24.89 million	$2.39	11.71

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Capital City Bank Group and CoastalSouth Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital City Bank Group	0	3	1	0	2.25
CoastalSouth Bancshares	0	1	2	1	3.00

Capital City Bank Group currently has a consensus target price of $51.75, suggesting a potential upside of 1.89%. CoastalSouth Bancshares has a consensus target price of $31.50, suggesting a potential upside of 12.58%. Given CoastalSouth Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe CoastalSouth Bancshares is more favorable than Capital City Bank Group.

Profitability

This table compares Capital City Bank Group and CoastalSouth Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capital City Bank Group	21.85%	11.18%	1.42%
CoastalSouth Bancshares	20.56%	11.20%	1.25%

Dividends

Capital City Bank Group pays an annual dividend of $1.08 per share and has a dividend yield of 2.1%. CoastalSouth Bancshares pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. Capital City Bank Group pays out 29.5% of its earnings in the form of a dividend. CoastalSouth Bancshares pays out 8.4% 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 City Bank Group has raised its dividend for 11 consecutive years. Capital City Bank Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

44.6% of Capital City Bank Group shares are held by institutional investors. 19.8% of Capital City Bank Group shares are held by company insiders. Comparatively, 15.1% of CoastalSouth Bancshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Capital City Bank Group beats CoastalSouth Bancshares on 12 of the 18 factors compared between the two stocks.

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.

About CoastalSouth Bancshares

CoastalSouth Bancshares, Inc. is a bank holding company headquartered in Atlanta, Georgia. Through our wholly owned subsidiary, Coastal States Bank, a South Carolina state-chartered commercial bank, we offer a full range of banking products and services designed for businesses, real estate professionals, and consumers looking for a deep and meaningful relationship with their bank. Today, we have a community banking presence in some of the fastest growing and most business-friendly markets in the U.S., namely the Lowcountry of South Carolina (Hilton Head Island, Bluffton, and Beaufort), nearby Savannah, Georgia, and the Atlanta, Georgia market. — In addition to our traditional community banking operations, we operate four specialty lines of business that provide scalability and diversification: • Senior Housing Lending – focuses on lending to operators across the spectrum of senior care, with an emphasis on assisted living; • Marine Lending – focuses on consumer loans primarily to high-net-worth borrowers secured by yachts and high-end sport fishing vessels; • Government Guaranteed Lending – focuses on origination of small business and other loans guaranteed by the SBA and USDA; and • Mortgage Banker Finance – focuses on mortgage warehouse lending to mortgage originators. By combining the relationship-based focus of a community bank with our specialty lines of business, we believe we can capitalize on the substantial growth opportunities available in our markets, particularly given the scarcity of community banks between $1.5 billion and $5.0 billion in total assets. Our principal executive offices are located in Atlanta, Georgia.