Capital One Financial (NYSE:COF) versus Evans Bancorp (NYSE:EVBN) Financial Analysis

Capital One Financial (NYSE:COFGet Rating) and Evans Bancorp (NYSE:EVBNGet Rating) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Earnings and Valuation

This table compares Capital One Financial and Evans Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Capital One Financial $32.03 billion 1.24 $12.39 billion $20.19 5.16
Evans Bancorp $96.43 million 2.26 $24.04 million $4.01 9.85

Capital One Financial has higher revenue and earnings than Evans Bancorp. Capital One Financial is trading at a lower price-to-earnings ratio than Evans Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Capital One Financial and Evans Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capital One Financial 3 6 6 0 2.20
Evans Bancorp 0 0 0 0 N/A

Capital One Financial presently has a consensus target price of $123.18, suggesting a potential upside of 18.23%. Given Capital One Financial’s higher probable upside, equities research analysts plainly believe Capital One Financial is more favorable than Evans Bancorp.

Insider and Institutional Ownership

88.3% of Capital One Financial shares are held by institutional investors. Comparatively, 55.3% of Evans Bancorp shares are held by institutional investors. 1.3% of Capital One Financial shares are held by company insiders. Comparatively, 6.3% of Evans Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Capital One Financial and Evans Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Capital One Financial 23.84% 15.44% 1.95%
Evans Bancorp 22.85% 13.37% 1.01%

Dividends

Capital One Financial pays an annual dividend of $2.40 per share and has a dividend yield of 2.3%. Evans Bancorp pays an annual dividend of $1.28 per share and has a dividend yield of 3.2%. Capital One Financial pays out 11.9% of its earnings in the form of a dividend. Evans Bancorp pays out 31.9% 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. Evans Bancorp has increased its dividend for 11 consecutive years. Evans Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Capital One Financial has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, Evans Bancorp has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Summary

Capital One Financial beats Evans Bancorp on 11 of the 16 factors compared between the two stocks.

About Capital One Financial

(Get Rating)

Capital One Financial Corp. operates as a financial holding company. The firm engages in the provision of financial products and services. It operates through the following segments: Credit Card, Consumer Banking and Commercial Banking. The Credit Card segment includes domestic consumer and small business card lending, and international card lending businesses. The Consumer Banking segment consists of branch-based lending and deposit gathering activities for consumers and small businesses. The Commercial Banking segment includes lending, deposit gathering and treasury management services to commercial real estate and commercial and industrial customers. The company was founded by Richard D. Fairbank on July 21, 1994, and is headquartered in McLean, VA.

About Evans Bancorp

(Get Rating)

Evans Bancorp, Inc. is a bank holding company, which engages in the provision of financial solutions. It operates through the Banking Activities and Insurance Agency Activities segments. The Banking Activities segment offers consumer and commercial banking services such as lending, deposits, annuities, and mutual funds. The Insurance Agency Activities segment includes insurance policies on a commission basis, surety bonds, risk management, and disability reinsurance products. The company was founded on October 28, 1988 and is headquartered in Williamsville, NY.

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