Capital One Financial (NYSE:COF) and 1st Colonial Bancorp (OTCMKTS:FCOB) Critical Comparison

1st Colonial Bancorp (OTCMKTS:FCOB) and Capital One Financial (NYSE:COF) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Volatility & Risk

1st Colonial Bancorp has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Capital One Financial has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.

Valuation & Earnings

This table compares 1st Colonial Bancorp and Capital One Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
1st Colonial Bancorp	$46.18 million	1.56	$8.06 million	$1.64	9.18
Capital One Financial	$39.11 billion	1.80	$4.75 billion	$11.59	15.95

Capital One Financial has higher revenue and earnings than 1st Colonial Bancorp. 1st Colonial Bancorp is trading at a lower price-to-earnings ratio than Capital One Financial, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for 1st Colonial Bancorp and Capital One Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
1st Colonial Bancorp	0	0	0	0	0.00
Capital One Financial	0	7	10	1	2.67

Capital One Financial has a consensus target price of $202.27, indicating a potential upside of 9.43%. Given Capital One Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Capital One Financial is more favorable than 1st Colonial Bancorp.

Profitability

This table compares 1st Colonial Bancorp and Capital One Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
1st Colonial Bancorp	17.44%	11.13%	0.99%
Capital One Financial	9.46%	9.45%	1.17%

Insider and Institutional Ownership

13.4% of 1st Colonial Bancorp shares are held by institutional investors. Comparatively, 89.8% of Capital One Financial shares are held by institutional investors. 1.3% of Capital One Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Capital One Financial beats 1st Colonial Bancorp on 13 of the 15 factors compared between the two stocks.

About 1st Colonial Bancorp

1st Colonial Bancorp, Inc. operates as the bank holding company for 1st Colonial Community Bank that provides a range of business and consumer financial services in New Jersey. The company offers various deposit products, including savings accounts, money market accounts, certificates of deposit, club accounts, and business and personal checking accounts. It also provides home equity loans, home equity lines of credit, personal and vehicle loans, residential and commercial mortgages, construction loans, business lines of credit, equipment and vehicle financing, real estate loans, working capital line of credit, and business acquisition loans, as well as small business administration loans. In addition, the company offers cash management services comprising remote deposit capture, ACH/wire transfer, night deposit drop, and merchant services; safe deposit boxes; and coin counting, online and mobile banking, debit card, and ATM services. The company was founded in 2000 and is headquartered in Mount Laurel, New Jersey.

About Capital One Financial

Capital One Financial Corporation operates as the financial services holding company for the Capital One, National Association, which engages in the provision of various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company accepts checking accounts, money market deposits, negotiable order of withdrawals, savings deposits, and time deposits. Its loan products include credit card loans; auto and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and provides advisory, capital markets, treasury management, and depository services. It serves consumers, small businesses, and commercial clients through digital channels, branches, cafés, and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and California. The company was founded in 1988 and is headquartered in McLean, Virginia.