Head-To-Head Survey: Capital Bancorp (NASDAQ:CBNK) and U.S. Bancorp (NYSE:USB)

Capital Bancorp (NASDAQ:CBNK) and U.S. Bancorp (NYSE:USB) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Valuation & Earnings

This table compares Capital Bancorp and U.S. Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital Bancorp	$208.18 million	2.27	$35.87 million	$2.33	12.27
U.S. Bancorp	$40.62 billion	2.05	$5.43 billion	$3.27	16.35

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

Dividends

Capital Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. U.S. Bancorp pays an annual dividend of $2.00 per share and has a dividend yield of 3.7%. Capital Bancorp pays out 17.2% of its earnings in the form of a dividend. U.S. Bancorp pays out 61.2% 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. U.S. Bancorp has increased its dividend for 14 consecutive years. U.S. Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent recommendations for Capital Bancorp and U.S. Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital Bancorp	0	1	2	0	2.67
U.S. Bancorp	0	11	9	0	2.45

Capital Bancorp presently has a consensus target price of $27.67, suggesting a potential downside of 3.20%. U.S. Bancorp has a consensus target price of $52.02, suggesting a potential downside of 2.73%. Given U.S. Bancorp’s higher probable upside, analysts clearly believe U.S. Bancorp is more favorable than Capital Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Capital Bancorp	14.49%	12.66%	1.41%
U.S. Bancorp	12.92%	12.91%	0.96%

Institutional and Insider Ownership

56.1% of Capital Bancorp shares are held by institutional investors. Comparatively, 77.6% of U.S. Bancorp shares are held by institutional investors. 32.5% of Capital Bancorp shares are held by insiders. Comparatively, 0.2% of U.S. Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Capital Bancorp has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, U.S. Bancorp has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Summary

U.S. Bancorp beats Capital Bancorp on 11 of the 17 factors compared between the two stocks.

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.

About U.S. Bancorp

U.S. Bancorp, a financial services holding company, provides various financial services to individuals, businesses, institutional organizations, governmental entities, and other financial institutions in the United States. It operates through Wealth, Corporate, Commercial and Institutional Banking; Consumer and Business Banking; Payment Services; and Treasury and Corporate Support segments. The company offers depository services, including checking accounts, savings accounts, and time certificate contracts; and lending services, such as traditional credit products and credit card services, lease financing and import/export trade, asset-backed lending, agricultural finance, and other products. It also provides ancillary services comprising capital markets, treasury management, and receivable lock-box collection services to corporate and governmental entity customers. In addition, the company offers asset management and fiduciary services for individuals, estates, foundations, business corporations, and charitable organizations. Further, it provides investment and insurance products to its customers principally within its domestic markets, as well as fund administration services to mutual and other funds. Additionally, the company provides corporate and purchasing card, and corporate trust services. Furthermore, it offers trust and investment management, merchant and ATM processing, mortgage banking, insurance, and brokerage and leasing services. U.S. Bancorp was founded in 1863 and is headquartered in Minneapolis, Minnesota.