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

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

Dividends

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

Volatility and Risk

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital Bancorp	$168.89 million	2.01	$35.87 million	$2.34	10.43
Pioneer Bankshares	$15.49 million	1.55	$1.90 million	N/A	N/A

Capital Bancorp has higher revenue and earnings than Pioneer Bankshares.

Insider and Institutional Ownership

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

Profitability

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

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

Analyst Ratings

This is a summary of current ratings and price targets for Capital Bancorp and Pioneer Bankshares, as provided by MarketBeat.

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

Capital Bancorp presently has a consensus price target of $27.00, indicating a potential upside of 10.66%. Given Capital Bancorp’s higher probable upside, equities research analysts clearly believe Capital Bancorp is more favorable than Pioneer Bankshares.

Summary

Capital Bancorp beats Pioneer Bankshares on 11 of the 13 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 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.