Community Capital Bancshares (OTCMKTS:ALBY) vs. National Bank (NYSE:NBHC) Critical Review

National Bank (NYSE:NBHC) and Community Capital Bancshares (OTCMKTS:ALBY) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Insider & Institutional Ownership

92.7% of National Bank shares are held by institutional investors. 3.1% of National Bank shares are held by insiders. Comparatively, 42.4% of Community Capital Bancshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares National Bank and Community Capital Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Bank	21.40%	10.44%	1.28%
Community Capital Bancshares	N/A	N/A	N/A

Volatility & Risk

National Bank has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Community Capital Bancshares has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for National Bank and Community Capital Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Bank	0	3	2	0	2.40
Community Capital Bancshares	0	0	0	0	N/A

National Bank presently has a consensus target price of $46.40, indicating a potential upside of 12.95%. Given National Bank’s higher probable upside, research analysts plainly believe National Bank is more favorable than Community Capital Bancshares.

Dividends

National Bank pays an annual dividend of $1.12 per share and has a dividend yield of 2.7%. Community Capital Bancshares pays an annual dividend of $0.75 per share and has a dividend yield of 4.0%. National Bank pays out 32.2% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares National Bank and Community Capital Bancshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Bank	$406.12 million	3.83	$142.05 million	$3.48	11.80
Community Capital Bancshares	N/A	N/A	N/A	N/A	N/A

National Bank has higher revenue and earnings than Community Capital Bancshares.

Summary

National Bank beats Community Capital Bancshares on 8 of the 11 factors compared between the two stocks.

About National Bank

National Bank Holdings Corporation operates as the bank holding company for NBH Bank that provides various banking products and financial services to commercial, business, and consumer clients in the United States. It offers deposit products, including checking, savings, money market, and other deposit accounts, including fixed-rate and fixed maturity time deposits. The company also provides commercial and industrial loans and leases, such as working capital loans, equipment loans, lender finance loans, food and agriculture loans, government and non-profit loans, owner occupied commercial real estate loans, and other commercial loans and leases; non-owner occupied commercial real estate loans consisting of loans on commercial properties, such as office buildings, warehouse/distribution buildings, multi-family, hospitality, and retail buildings; small business administration loans to support small businesses and entrepreneurs; term loans, line of credits, and real estate secured loans; residential real estate loans; and consumer loans. In addition, it offers treasury management solutions comprising online and mobile banking, commercial credit card, wire transfer, automated clearing house, electronic bill payment, lock box, remote deposit capture, merchant processing, cash vault, controlled disbursements, and fraud prevention services, as well as other auxiliary services, including account reconciliation, collections, repurchase accounts, zero balance accounts, and sweep accounts. The company operates through a network of banking centers located in Colorado, the greater Kansas City region, New Mexico, Utah, Wyoming, Idaho, and Texas. It also operates ATMs. The company was formerly known as NBH Holdings Corp. and changed its name to National Bank Holdings Corporation in March 2012. The company was incorporated in 2009 and is headquartered in Greenwood Village, Colorado.

About Community Capital Bancshares

Community Capital Bancshares, Inc. operates as the holding company for AB&T that provides various banking products and services to individual and corporate customers. The company accepts various deposit products, such as checking, savings, money market, and individual retirement accounts, as well as certificates of deposits. Its loan products include commercial and residential real estate, commercial, financial, agricultural, consumer installment, overdrafts and other revolving credit, and educational loans. The company also offers money transfer, bill pay, remote deposit capture, ACH origination, and merchant services, as well as online, mobile, and text message banking services. The company was incorporated in 1998 and is based in Albany, Georgia.