Comparing Dime Community Bancshares (NASDAQ:DCOM) & Community Capital Bancshares (OTCMKTS:ALBY)

Community Capital Bancshares (OTCMKTS:ALBY) and Dime Community Bancshares (NASDAQ:DCOM) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.

Dividends

Community Capital Bancshares pays an annual dividend of $2.00 per share and has a dividend yield of 6.7%. Dime Community Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 2.8%. Community Capital Bancshares pays out 51.9% of its earnings in the form of a dividend. Dime Community Bancshares pays out 37.6% 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. Dime Community Bancshares has raised its dividend for 2 consecutive years.

Risk and Volatility

Community Capital Bancshares has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500. Comparatively, Dime Community Bancshares has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.

Valuation & Earnings

This table compares Community Capital Bancshares and Dime Community Bancshares”s 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	2.59	$4.90 million	$3.85	7.79
Dime Community Bancshares	$472.68 million	3.35	$110.68 million	$2.66	13.58

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

Profitability

This table compares Community Capital Bancshares and Dime Community Bancshares’ 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
Dime Community Bancshares	15.15%	9.12%	0.83%

Analyst Ratings

This is a summary of recent ratings and target prices for Community Capital Bancshares and Dime Community Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Capital Bancshares	0	0	0	0	0.00
Dime Community Bancshares	0	2	3	1	2.83

Dime Community Bancshares has a consensus price target of $39.75, suggesting a potential upside of 10.04%. Given Dime Community Bancshares’ stronger consensus rating and higher possible upside, analysts plainly believe Dime Community Bancshares is more favorable than Community Capital Bancshares.

Insider & Institutional Ownership

75.3% of Dime Community Bancshares shares are held by institutional investors. 42.4% of Community Capital Bancshares shares are held by insiders. Comparatively, 7.4% of Dime Community Bancshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Dime Community Bancshares beats Community Capital Bancshares on 15 of the 18 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 Dime Community Bancshares

Dime Community Bancshares, Inc. operates as the holding company for Dime Community Bank that engages in the provision of various commercial banking and financial services. The company accepts time, savings, and demand deposits from the businesses, consumers, and local municipalities. It also offers commercial real estate loans; multi-family mortgage loans; residential mortgage loans; letters of credit; secured and unsecured commercial and consumer loans; lines of credit; home equity loans; and construction and land loans. In addition, the company invests in Federal Home Loan Bank, Federal National Mortgage Association, Government National Mortgage Association, and Federal Home Loan Mortgage Corporation mortgage-backed securities, collateralized mortgage obligations, and other asset backed securities; U.S. Treasury securities; New York state and local municipal obligations; U.S. government-sponsored enterprise securities; and corporate bonds. Further, it offers certificate of deposit account registry services and insured cash sweep programs; federal deposit insurance corporation insurance; merchant credit and debit card processing, automated teller machines, cash management services, lockbox processing, online banking services, remote deposit capture, safe deposit boxes, and individual retirement accounts; investment products and services through a third-party broker dealer; and title insurance broker services for small and medium sized businesses, and municipal and consumer relationships. The company was founded in 1910 and is headquartered in Hauppauge, New York.