Head-To-Head Analysis: Jernigan Capital (NASDAQ:JCAP) & Capital One Financial (NYSE:COF)

Capital One Financial (NYSE:COF) and Jernigan Capital (NASDAQ:JCAP) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, institutional ownership, dividends and earnings.

Profitability

This table compares Capital One Financial and Jernigan Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capital One Financial	13.70%	11.64%	1.94%
Jernigan Capital	23.50%	35.87%	8.16%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Capital One Financial and Jernigan Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital One Financial	0	4	20	0	2.83
Jernigan Capital	1	1	4	1	2.71

Capital One Financial presently has a consensus target price of $256.32, indicating a potential upside of 27.36%. Jernigan Capital has a consensus target price of $27.50, indicating a potential upside of 34.74%. Given Jernigan Capital’s higher probable upside, analysts plainly believe Jernigan Capital is more favorable than Capital One Financial.

Volatility & Risk

Capital One Financial has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Jernigan Capital has a beta of -0.02, indicating that its stock price is 102% less volatile than the S&P 500.

Earnings & Valuation

This table compares Capital One Financial and Jernigan Capital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital One Financial	$69.25 billion	1.78	$2.45 billion	$16.94	11.88
Jernigan Capital	$659.62 million	1.78	$187.96 million	$2.45	8.33

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

Institutional and Insider Ownership

89.8% of Capital One Financial shares are owned by institutional investors. 0.8% of Capital One Financial shares are owned by company insiders. Comparatively, 8.3% of Jernigan Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Capital One Financial pays an annual dividend of $3.20 per share and has a dividend yield of 1.6%. Jernigan Capital pays an annual dividend of $0.96 per share and has a dividend yield of 4.7%. Capital One Financial pays out 18.9% of its earnings in the form of a dividend. Jernigan Capital pays out 39.2% 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.

Summary

Capital One Financial beats Jernigan Capital on 10 of the 17 factors compared between the two stocks.

About Capital One Financial

Capital One Financial Corporation operates as the financial services holding company for the Capital One, National Association, which engages in the provision of various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company accepts checking accounts, money market deposits, negotiable order of withdrawals, savings deposits, and time deposits. Its loan products include credit card loans; auto and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and provides advisory, capital markets, treasury management, and depository services. It serves consumers, small businesses, and commercial clients through digital channels, branches, cafés, and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and California. The company was founded in 1988 and is headquartered in McLean, Virginia.

About Jernigan Capital

Jernigan Capital is a New York Stock Exchange-listed real estate investment trust (NYSE: JCAP) that provides debt and equity capital to private developers, owners and operators of self-storage facilities with a view to eventual outright ownership of facilities the Company finances. The Company's mission is to maximize shareholder value by accumulating a multi-billion dollar investment portfolio consisting of the newest, most attractive and best located self-storage facilities in the United States through a talented and experienced team demonstrating the highest levels of integrity, dedication, excellence and community.