Head-To-Head Analysis: United Bancorporation of Alabama (OTCMKTS:UBAB) and Capital City Bank Group (NASDAQ:CCBG)

United Bancorporation of Alabama (OTCMKTS:UBAB) and Capital City Bank Group (NASDAQ:CCBG) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Profitability

This table compares United Bancorporation of Alabama and Capital City Bank Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Bancorporation of Alabama	21.11%	12.60%	1.34%
Capital City Bank Group	21.47%	11.55%	1.40%

Earnings and Valuation

This table compares United Bancorporation of Alabama and Capital City Bank Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Bancorporation of Alabama	$89.83 million	1.70	$19.67 million	$5.22	9.58
Capital City Bank Group	$286.74 million	2.49	$61.56 million	$3.60	11.55

Capital City Bank Group has higher revenue and earnings than United Bancorporation of Alabama. United Bancorporation of Alabama 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.

Insider and Institutional Ownership

5.5% of United Bancorporation of Alabama shares are owned by institutional investors. Comparatively, 44.6% of Capital City Bank Group shares are owned by institutional investors. 19.8% of Capital City Bank Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

United Bancorporation of Alabama has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Capital City Bank Group has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500.

Dividends

United Bancorporation of Alabama pays an annual dividend of $1.40 per share and has a dividend yield of 2.8%. Capital City Bank Group pays an annual dividend of $1.08 per share and has a dividend yield of 2.6%. United Bancorporation of Alabama pays out 26.8% of its earnings in the form of a dividend. Capital City Bank Group pays out 30.0% 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. United Bancorporation of Alabama is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current recommendations for United Bancorporation of Alabama and Capital City Bank Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Bancorporation of Alabama	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 8.27%. Given Capital City Bank Group’s stronger consensus rating and higher possible upside, analysts clearly believe Capital City Bank Group is more favorable than United Bancorporation of Alabama.

Summary

Capital City Bank Group beats United Bancorporation of Alabama on 12 of the 17 factors compared between the two stocks.

About United Bancorporation of Alabama

United Bancorporation of Alabama, Inc. operates as the bank holding company for United Bank that provides banking services. The company offers checking and savings accounts, certificates of deposit, individual retirement accounts, small business programs, business solutions, merchant services, and cash management services. It also provides various lending services, such as personal loans, business loans, lines of credit, and equipment loans; real estate loans for the agricultural community and working lines of credit; and overdraft services. In addition, the company offers debit cards, prepaid cards, Visa credit cards, gift cards, and safe deposit boxes. Further, it provides check cashing, convenience, remote deposit, mobile check deposit, personal storage compartments, Web payment options, insurance products, investment and brokerage, and online and mobile banking services. United Bancorporation of Alabama, Inc. was founded in 1904 and is based in Atmore, Alabama.

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.