Financial Review: Community Capital Bancshares (OTCMKTS:ALBY) and Fvcbankcorp (NASDAQ:FVCB)

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

Profitability

This table compares Community Capital Bancshares and Fvcbankcorp’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
Fvcbankcorp	18.85%	9.33%	1.02%

Insider and Institutional Ownership

43.6% of Fvcbankcorp shares are owned by institutional investors. 42.4% of Community Capital Bancshares shares are owned by company insiders. Comparatively, 11.2% of Fvcbankcorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Community Capital Bancshares has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, Fvcbankcorp has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Community Capital Bancshares and Fvcbankcorp, 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
Fvcbankcorp	0	1	2	0	2.67

Fvcbankcorp has a consensus price target of $19.00, suggesting a potential upside of 19.20%. Given Fvcbankcorp’s stronger consensus rating and higher probable upside, analysts clearly believe Fvcbankcorp is more favorable than Community Capital Bancshares.

Valuation & Earnings

This table compares Community Capital Bancshares and Fvcbankcorp”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	2.69	$4.90 million	$3.85	8.07
Fvcbankcorp	$122.03 million	2.35	$22.06 million	$1.28	12.45

Fvcbankcorp has higher revenue and earnings than Community Capital Bancshares. Community Capital Bancshares is trading at a lower price-to-earnings ratio than Fvcbankcorp, 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 6.4%. Fvcbankcorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.8%. Community Capital Bancshares pays out 51.9% of its earnings in the form of a dividend. Fvcbankcorp pays out 21.9% 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.

Summary

Fvcbankcorp beats Community Capital Bancshares on 11 of the 16 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 Fvcbankcorp

FVCBankcorp, Inc. operates as the bank holding company for FVCbank that provides various banking products and services in Virginia. It offers deposit products, including interest and noninterest-bearing transaction accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides commercial real estate loans; commercial construction loans; commercial loans for various business purposes, such as for working capital, equipment purchases, lines of credit, and government contract financing; small business administration loans; asset-based loans and accounts receivable financing; home equity loans; and consumer loans. In addition, it offers business and consumer credit cards; merchant services; business insurance products; and online banking, remote deposit, and mobile banking services. The company serves commercial businesses, nonprofit organizations, professional service entities, and their respective owners and employees located in the greater Washington, D.C., and Baltimore metropolitan areas. It operates branch offices in Arlington, Virginia; the independent city of Manassas, Virginia; Reston, Fairfax County, Virginia; Springfield, Fairfax County in Virginia; and Montgomery County and Baltimore in Maryland, and Washington, D.C. FVCBankcorp, Inc. was founded in 2007 and is headquartered in Fairfax, Virginia.