First Financial Bankshares (NASDAQ:FFIN) and Capital City Bank Group (NASDAQ:CCBG) Financial Contrast

First Financial Bankshares (NASDAQ:FFIN) and Capital City Bank Group (NASDAQ:CCBG) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Institutional and Insider Ownership

69.8% of First Financial Bankshares shares are held by institutional investors. Comparatively, 44.6% of Capital City Bank Group shares are held by institutional investors. 4.2% of First Financial Bankshares shares are held by company insiders. Comparatively, 19.4% of Capital City Bank Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

First Financial Bankshares pays an annual dividend of $0.72 per share and has a dividend yield of 1.9%. Capital City Bank Group pays an annual dividend of $0.92 per share and has a dividend yield of 2.6%. First Financial Bankshares pays out 51.4% of its earnings in the form of a dividend. Capital City Bank Group pays out 30.0% 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. First Financial Bankshares has increased its dividend for 13 consecutive years. Capital City Bank Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for First Financial Bankshares and Capital City Bank Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Financial Bankshares	0	3	0	0	2.00
Capital City Bank Group	0	3	2	0	2.40

First Financial Bankshares presently has a consensus target price of $35.67, indicating a potential downside of 5.02%. Capital City Bank Group has a consensus target price of $35.80, indicating a potential upside of 2.67%. Given Capital City Bank Group’s stronger consensus rating and higher probable upside, analysts plainly believe Capital City Bank Group is more favorable than First Financial Bankshares.

Profitability

This table compares First Financial Bankshares and Capital City Bank Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Financial Bankshares	29.13%	14.01%	1.54%
Capital City Bank Group	19.67%	11.67%	1.22%

Volatility and Risk

First Financial Bankshares has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Capital City Bank Group has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Earnings and Valuation

This table compares First Financial Bankshares and Capital City Bank Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Financial Bankshares	$492.19 million	10.89	$198.98 million	$1.40	26.81
Capital City Bank Group	$220.52 million	2.67	$52.26 million	$3.07	11.32

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

Summary

First Financial Bankshares beats Capital City Bank Group on 10 of the 17 factors compared between the two stocks.

About First Financial Bankshares

First Financial Bankshares, Inc., through its subsidiaries, provides commercial banking products and services in Texas. The company offers checking, savings and time deposits; automated teller machines, drive-in, and night deposit services; safe deposit facilities, remote deposit capture, internet banking, mobile banking, payroll cards, funds transfer, and performing other customary commercial banking services; securities brokerage services; and trust and wealth management services, including wealth management, estates administration, oil and gas management, testamentary trusts, revocable and irrevocable trusts, and agency accounts. It also provides commercial and industrial, municipal, agricultural, construction and development, farm, residential, and consumer auto and non-auto, as well as non-owner occupied and owner occupied commercial real estate loans. In addition, the company offers advisory and specialized services related to asset management, investing, purchasing, advertising, public relations, and technology services. First Financial Bankshares, Inc. was founded in 1890 and is headquartered in Abilene, Texas.

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.