Capital City Bank Group (NASDAQ:CCBG) and Home BancShares (NYSE:HOMB) Head-To-Head Survey

Capital City Bank Group (NASDAQ:CCBG) and Home BancShares (NYSE:HOMB) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Profitability

This table compares Capital City Bank Group and Home BancShares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capital City Bank Group	21.50%	11.92%	1.39%
Home BancShares	31.20%	10.94%	1.96%

Insider & Institutional Ownership

44.6% of Capital City Bank Group shares are owned by institutional investors. Comparatively, 67.3% of Home BancShares shares are owned by institutional investors. 19.6% of Capital City Bank Group shares are owned by insiders. Comparatively, 6.3% of Home BancShares shares are owned 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.

Valuation and Earnings

This table compares Capital City Bank Group and Home BancShares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital City Bank Group	$240.59 million	2.84	$52.92 million	$3.57	11.22
Home BancShares	$1.05 billion	5.12	$402.24 million	$2.32	11.83

Home BancShares has higher revenue and earnings than Capital City Bank Group. Capital City Bank Group is trading at a lower price-to-earnings ratio than Home BancShares, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Capital City Bank Group and Home BancShares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital City Bank Group	0	1	2	0	2.67
Home BancShares	0	3	4	0	2.57

Capital City Bank Group presently has a consensus target price of $45.00, suggesting a potential upside of 12.33%. Home BancShares has a consensus target price of $32.83, suggesting a potential upside of 19.59%. Given Home BancShares’ higher possible upside, analysts plainly believe Home BancShares is more favorable than Capital City Bank Group.

Dividends

Capital City Bank Group pays an annual dividend of $1.04 per share and has a dividend yield of 2.6%. Home BancShares pays an annual dividend of $0.84 per share and has a dividend yield of 3.1%. Capital City Bank Group pays out 29.1% of its earnings in the form of a dividend. Home BancShares pays out 36.2% 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. Capital City Bank Group has increased its dividend for 11 consecutive years and Home BancShares has increased its dividend for 15 consecutive years. Home BancShares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Capital City Bank Group has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, Home BancShares has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Summary

Home BancShares beats Capital City Bank Group on 12 of the 17 factors compared between the two stocks.

About Capital City Bank Group

Capital City Bank Group, Inc. operates as the financial holding company for Capital City Bank that provides a range of banking- related services to individual and corporate clients. The company offers financing for commercial business properties, equipment, inventories, and accounts receivable, as well as commercial leasing and letters of credit; treasury management services; and merchant credit card transaction processing services. It also provides commercial and residential real estate lending products, as well as fixed and adjustable-rate residential mortgage loans; personal, automobile, boat/RV, and home equity loans; and credit card programs. In addition, the company offers institutional banking services, including customized checking and savings accounts, cash management systems, tax-exempt loans, lines of credit, and term loans to meet the needs of state and local governments, public schools and colleges, charities, membership, and not-for-profit associations. Further, it provides consumer banking services comprising checking accounts, savings programs, interactive/automated teller machines, debit/credit cards, night deposit services, safe deposit facilities, and online and mobile banking services. Additionally, the company provides asset management for individuals through agency, personal trust, IRA, and personal investment management accounts; and various retail securities products, such as the U.S. government bonds, tax-free municipal bonds, stocks, mutual funds, unit investment trusts, annuities, life insurance, and long-term health care, as well as business, estate, financial, insurance and business planning, tax planning, and asset protection advisory services. Capital City Bank Group, Inc. was founded in 1895 and is headquartered in Tallahassee, Florida.

About Home BancShares

Home Bancshares, Inc. (Conway, AR) operates as the bank holding company for Centennial Bank that provides commercial and retail banking, and related financial services to businesses, real estate developers and investors, individuals, and municipalities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company's loan portfolio comprises non-farm/non-residential real estate, construction/land development, residential mortgage, consumer, agricultural, and commercial and industrial loans. It provides internet banking, mobile banking and voice response information, cash management, overdraft protection, direct deposit, and automatic account transfer services, as well as safe deposit boxes and the United States savings bonds. In addition, the company writes policies for commercial and personal lines of business, including insurance for property, casualty, life, health, and employee benefits. It operates through branches in Arkansas, Florida, Alabama, Texas, and New York City. Home Bancshares, Inc. (Conway, AR) was founded in 1998 and is headquartered in Conway, Arkansas.