Analyzing Prime Meridian (OTCMKTS:PMHG) and Community Capital Bancshares (OTCMKTS:ALBY)

Insider and Institutional Ownership

11.8% of Prime Meridian shares are held by institutional investors. 42.4% of Community Capital Bancshares shares are held by insiders. Comparatively, 25.9% of Prime Meridian shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Community Capital Bancshares and Prime Meridian’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Capital Bancshares	N/A	N/A	N/A
Prime Meridian	15.49%	9.13%	0.87%

Valuation & Earnings

This table compares Community Capital Bancshares and Prime Meridian”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Capital Bancshares	$15.03 million	2.53	$4.90 million	$3.78	7.73
Prime Meridian	$50.36 million	3.92	$8.49 million	$2.48	23.39

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

Dividends

Community Capital Bancshares pays an annual dividend of $2.00 per share and has a dividend yield of 6.8%. Prime Meridian pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. Community Capital Bancshares pays out 52.9% of its earnings in the form of a dividend. Prime Meridian pays out 40.3% 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.

Volatility & Risk

Community Capital Bancshares has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, Prime Meridian has a beta of 0.06, suggesting that its stock price is 94% less volatile than the S&P 500.

Summary

Prime Meridian beats Community Capital Bancshares on 9 of the 13 factors compared between the two stocks.

About Community Capital Bancshares

Community Capital Bancshares, Inc. operates as the holding company for AB&T that provides various banking products and services to individual and corporate customers. The company accepts various deposit products, such as checking, savings, money market, and individual retirement accounts, as well as certificates of deposits. Its loan products include commercial and residential real estate, commercial, financial, agricultural, consumer installment, overdrafts and other revolving credit, and educational loans. The company also offers money transfer, bill pay, remote deposit capture, ACH origination, and merchant services, as well as online, mobile, and text message banking services. The company was incorporated in 1998 and is based in Albany, Georgia.

About Prime Meridian

Prime Meridian Holding Company operates as the bank holding company for Prime Meridian Bank that provides various consumer and commercial banking services to individuals and businesses. The company accepts various deposits, such as checking, money market, savings, term certificate of deposit, demand interest-bearing and noninterest-bearing, health savings, NOW, and escrow accounts, as well as retirement savings plans and time deposits. Its loan products include commercial real estate, residential real estate and home equity, small business administration, construction, equipment, and commercial loans; and consumer and other loans comprising financing of automobiles, boats, and recreational vehicles, as well as issues standby letters and business lines of credit. The company also offers debit and credit cards; mobile banking, remote and mobile deposit, Apple Pay, bank-to-bank transfer, and online banking services; and safe deposit, wire transfer, foreign exchange, direct deposits, notary, night depository, official checks, domestic collections, bank drafts, automated teller services, drive-in tellers, merchant card, and banking by mail services, as well as invests in securities. Prime Meridian Holding Company was founded in 2008 and is headquartered in Tallahassee, Florida.