Contrasting First Guaranty Bancshares (NASDAQ:FGBI) & Capital City Bank Group (NASDAQ:CCBG)

Capital City Bank Group (NASDAQ:CCBG) and First Guaranty Bancshares (NASDAQ:FGBI) 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, risk, institutional ownership, valuation, analyst recommendations and dividends.

Volatility and Risk

Capital City Bank Group has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, First Guaranty Bancshares has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Capital City Bank Group	21.50%	11.92%	1.39%
First Guaranty Bancshares	-4.49%	-4.73%	-0.27%

Dividends

Capital City Bank Group pays an annual dividend of $1.04 per share and has a dividend yield of 2.5%. First Guaranty Bancshares pays an annual dividend of $0.04 per share and has a dividend yield of 0.8%. Capital City Bank Group pays out 29.1% of its earnings in the form of a dividend. First Guaranty Bancshares pays out -1.0% 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 increased 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.

Insider & Institutional Ownership

44.6% of Capital City Bank Group shares are owned by institutional investors. Comparatively, 39.5% of First Guaranty Bancshares shares are owned by institutional investors. 19.6% of Capital City Bank Group shares are owned by company insiders. Comparatively, 47.2% of First Guaranty Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Capital City Bank Group and First Guaranty Bancshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital City Bank Group	$240.59 million	2.94	$52.92 million	$3.57	11.59
First Guaranty Bancshares	$96.48 million	0.81	$12.45 million	($4.13)	-1.23

Capital City Bank Group has higher revenue and earnings than First Guaranty Bancshares. First Guaranty 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 recent recommendations and price targets for Capital City Bank Group and First Guaranty Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital City Bank Group	0	1	2	0	2.67
First Guaranty Bancshares	2	0	0	0	1.00

Capital City Bank Group presently has a consensus target price of $45.00, suggesting a potential upside of 8.72%. Given Capital City Bank Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Capital City Bank Group is more favorable than First Guaranty Bancshares.

Summary

Capital City Bank Group beats First Guaranty Bancshares on 14 of the 17 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 First Guaranty Bancshares

First Guaranty Bancshares, Inc. operates as the holding company for First Guaranty Bank that provides commercial banking services in Louisiana and Texas. It offers various deposit products, including personal and business checking, savings, money market, and demand accounts, as well as time deposits to consumers, small businesses, and municipalities. The company provides loans, such as non-farm, non-residential loans secured by real estate, commercial and industrial loans, one- to four-family residential loans, multifamily loans, construction and land development loans, agricultural loans, farmland loans, and consumer and other loans to small to medium-sized businesses and professionals, and individuals. In addition, it offers a range of consumer services, including credit cards, mobile deposit capture, safe deposit boxes, official checks, online and mobile banking, automated teller machines, and online bill pay; provides additional solutions, such as merchant services, remote deposit capture, and lockbox services to business customers; and invests a portion of its assets in securities issued by the United States Government and its agencies, state and municipal obligations, corporate debt securities, mutual funds, and equity securities, as well as invests in mortgage-backed securities primarily issued or guaranteed by United States Government agencies or enterprises. First Guaranty Bancshares, Inc. was founded in 1934 and is headquartered in Hammond, Louisiana.