Contrasting Capital Bancorp (NASDAQ:CBNK) and Pioneer Bankshares (OTCMKTS:PNBI)

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

Dividends

Pioneer Bankshares pays an annual dividend of $1.00 per share and has a dividend yield of 4.2%. Capital Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.6%. Capital Bancorp pays out 17.1% of its earnings in the form of a dividend.

Profitability

This table compares Pioneer Bankshares and Capital Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pioneer Bankshares	N/A	N/A	N/A
Capital Bancorp	15.35%	13.34%	1.48%

Institutional and Insider Ownership

56.1% of Capital Bancorp shares are held by institutional investors. 13.7% of Pioneer Bankshares shares are held by company insiders. Comparatively, 32.5% of Capital Bancorp shares are held by company 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.

Risk and Volatility

Pioneer Bankshares has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500. Comparatively, Capital Bancorp has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Pioneer Bankshares and Capital Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pioneer Bankshares	0	0	0	0	N/A
Capital Bancorp	0	1	3	0	2.75

Capital Bancorp has a consensus target price of $27.00, suggesting a potential upside of 7.23%. Given Capital Bancorp’s higher possible upside, analysts plainly believe Capital Bancorp is more favorable than Pioneer Bankshares.

Earnings and Valuation

This table compares Pioneer Bankshares and Capital Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pioneer Bankshares	$15.49 million	1.55	$1.90 million	N/A	N/A
Capital Bancorp	$168.89 million	2.07	$35.87 million	$2.34	10.76

Capital Bancorp has higher revenue and earnings than Pioneer Bankshares.

Summary

Capital Bancorp beats Pioneer Bankshares on 11 of the 13 factors compared between the two stocks.

About Pioneer Bankshares

Pioneer Bankshares, Inc. operates as the bank holding company for Pioneer Bank, Inc. that provides various banking and related financial services to individual consumers, small to medium size businesses, and professional community in the United States. The company offers various deposit products, which include business and personal checking accounts, savings accounts, and certificates of deposit. Its personal loans comprise personal installment and single-pay, and auto loans; and business loans consists of operating capital, equipment loans, investment properties, lines of credit, business expansion, and property acquisition or construction, as well as home mortgage and home equity loans. In addition, the company provides credit and debit cards, safe deposit boxes, online and mobile banking tools, merchant services, and cash management services. Further, it offers investment products, such as individual retirement accounts, 529 college savings plans, small business investment strategies, fixed, and variable annuities. Additionally, the company provides personalized investment advisory services, as well as securities and insurance products and services. Pioneer Bankshares, Inc. was founded in 1909 and is headquartered in Stanley, Virginia.

About Capital Bancorp

Capital Bancorp, Inc. operates as the bank holding company for Capital Bank, N.A. that provides various banking products and services to businesses, not-for-profit associations, and entrepreneurs in Maryland, Virginia, and the District of Columbia. It operates through Commercial Banking, Capital Bank Home Loans, and OpenSky segments. The company offers a range of deposit products, including checking and savings, time, interest bearing and noninterest-bearing demand, and money market accounts, as well as certificates of deposit; and credit cards. It also originates residential mortgages; issues trust preferred securities; and provides residential and commercial real estate, construction, and commercial and industrial loans, as well as other consumer loans, such as term loans, car loans, and boat loans to small to medium-sized businesses, professionals, real estate investors, and small residential builders and individuals. Capital Bancorp, Inc. was founded in 1974 and is headquartered in Rockville, Maryland.