Analyzing Bank of New York Mellon (NYSE:BK) and Capital City Bank Group (NASDAQ:CCBG)

Bank of New York Mellon (NYSE:BKGet Free Report) and Capital City Bank Group (NASDAQ:CCBGGet Free Report) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Dividends

Bank of New York Mellon pays an annual dividend of $1.68 per share and has a dividend yield of 3.0%. Capital City Bank Group pays an annual dividend of $0.80 per share and has a dividend yield of 2.7%. Bank of New York Mellon pays out 42.3% of its earnings in the form of a dividend. Capital City Bank Group pays out 24.9% 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. Bank of New York Mellon has raised its dividend for 13 consecutive years and Capital City Bank Group has raised its dividend for 9 consecutive years. Bank of New York Mellon is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Bank of New York Mellon and Capital City Bank Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bank of New York Mellon $33.81 billion 1.27 $3.38 billion $3.97 14.01
Capital City Bank Group $252.68 million 1.97 $52.26 million $3.21 9.12

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

Profitability

This table compares Bank of New York Mellon and Capital City Bank Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank of New York Mellon 10.01% 11.62% 1.01%
Capital City Bank Group 20.67% 13.22% 1.26%

Institutional & Insider Ownership

81.3% of Bank of New York Mellon shares are held by institutional investors. Comparatively, 45.8% of Capital City Bank Group shares are held by institutional investors. 0.1% of Bank of New York Mellon shares are held by insiders. Comparatively, 23.2% of Capital City Bank Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Bank of New York Mellon and Capital City Bank Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank of New York Mellon 0 5 2 0 2.29
Capital City Bank Group 0 1 2 0 2.67

Bank of New York Mellon presently has a consensus price target of $53.75, suggesting a potential downside of 3.36%. Capital City Bank Group has a consensus price target of $34.67, suggesting a potential upside of 18.40%. Given Capital City Bank Group’s stronger consensus rating and higher probable upside, analysts plainly believe Capital City Bank Group is more favorable than Bank of New York Mellon.

Volatility & Risk

Bank of New York Mellon has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Capital City Bank Group has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

About Bank of New York Mellon

(Get Free Report)

The Bank of New York Mellon Corporation provides a range of financial products and services in the United States and internationally. The company operates through Securities Services, Market and Wealth Services, Investment and Wealth Management, and other segments. The Securities Services segment offers custody, trust and depositary, accounting, exchange-traded funds, middle-office solutions, transfer agency, services for private equity and real estate funds, foreign exchange, securities lending, liquidity/lending services, and data analytics. This segment also provides trustee, paying agency, fiduciary, escrow and other financial, issuer, and support services for brokers and investors. The Market and Wealth Services segment offers clearing and custody, investment, wealth and retirement solutions, technology and enterprise data management, trading, and prime brokerage services. This segment also provides integrated cash management solutions, including payments, foreign exchange, liquidity management, receivables processing and payables management, and trade finance and processing services. The Investment and Wealth Management segment offers investment management strategies and distribution of investment products, investment management, custody, wealth and estate planning, private banking, investment, and information management services. The Other segment engages in the provision of leasing, corporate treasury, derivative and other trading, corporate and bank-owned life insurance, renewable energy investment, and business exit services. It serves central banks and sovereigns, financial institutions, asset managers, insurance companies, corporations, local authorities and high net-worth individuals, and family offices. The company was founded in 1784 and is headquartered in New York, New York.

About Capital City Bank Group

(Get Free Report)

Capital City Bank Group, Inc. operates as the financial holding company for Capital City Bank that provides a range of banking 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. The company was founded in 1895 and is headquartered in Tallahassee, Florida.

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