First Community Financial Partners (NASDAQ: FCFP) and Capital Bank Financial Corp. (NASDAQ:CBF) are both financials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.

Volatility and Risk

First Community Financial Partners has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Capital Bank Financial Corp. has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.

Insider & Institutional Ownership

18.0% of First Community Financial Partners shares are held by institutional investors. Comparatively, 58.8% of Capital Bank Financial Corp. shares are held by institutional investors. 24.6% of First Community Financial Partners shares are held by company insiders. Comparatively, 12.4% of Capital Bank Financial Corp. shares are held by company 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.

Dividends

Capital Bank Financial Corp. pays an annual dividend of $0.48 per share and has a dividend yield of 1.2%. First Community Financial Partners does not pay a dividend. Capital Bank Financial Corp. pays out 32.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for First Community Financial Partners and Capital Bank Financial Corp., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Community Financial Partners 0 2 0 0 2.00
Capital Bank Financial Corp. 0 3 1 0 2.25

First Community Financial Partners currently has a consensus target price of $12.88, indicating a potential downside of 1.72%. Capital Bank Financial Corp. has a consensus target price of $43.33, indicating a potential upside of 5.05%. Given Capital Bank Financial Corp.’s stronger consensus rating and higher probable upside, analysts clearly believe Capital Bank Financial Corp. is more favorable than First Community Financial Partners.

Profitability

This table compares First Community Financial Partners and Capital Bank Financial Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Community Financial Partners 29.40% 11.65% 1.05%
Capital Bank Financial Corp. 18.44% 7.42% 0.97%

Valuation and Earnings

This table compares First Community Financial Partners and Capital Bank Financial Corp.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
First Community Financial Partners N/A N/A N/A $0.71 18.45
Capital Bank Financial Corp. $360.78 million 5.91 $77.54 million $1.50 27.50

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

Summary

Capital Bank Financial Corp. beats First Community Financial Partners on 7 of the 13 factors compared between the two stocks.

First Community Financial Partners Company Profile

First Community Financial Partners, Inc. (First Community) is a bank holding company. The Company has a banking subsidiary, First Community Financial Bank (the Bank). The Bank is a full-service community bank principally engaged in the business of commercial, family and personal banking. The Bank offers customers a range of loan, deposit, and other financial products and services. The Bank also offers customers a range of financial products and services that are related or ancillary to loans and deposits, including cash management, funds transfers, bill payment and other online banking transactions, automated teller machines and safe deposit boxes. The Bank’s loan portfolio consists primarily of non-residential real estate loans, which include owner occupied commercial real estate and investor commercial real estate, multi-family, construction and land development loans.

Capital Bank Financial Corp. Company Profile

Capital Bank Financial Corp. is a bank holding company whose business is conducted through Capital Bank Corporation (the Bank). The Company, through its branches, offers a range of commercial and consumer loans and deposits, as well as ancillary financial services. It offers a range of commercial loan products, including owner occupied and non-owner occupied commercial real estate; construction; working capital loans and lines of credit; demand and time loans, and equipment, inventory and accounts receivable financing. In addition to business demand, savings and money market accounts, it also provides cash management services and deposit products. It offers various services to its customers, including checking, savings and money market accounts, certificates of deposit and debit and credit cards. It offers consumer loan products, including home equity loans and lines of credit; second lien mortgages; new and used auto loans; new and used boat loans, and overdraft protection.

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