Head-To-Head Survey: Capstar Financial (NASDAQ:CSTR) versus Randolph Bancorp (NASDAQ:RNDB)

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Capstar Financial (NASDAQ:CSTR) and Randolph Bancorp (NASDAQ:RNDB) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.

Earnings & Valuation

This table compares Capstar Financial and Randolph Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Capstar Financial $83.24 million 3.55 $9.65 million $1.19 14.13
Randolph Bancorp $34.97 million 2.44 -$2.09 million N/A N/A

Capstar Financial has higher revenue and earnings than Randolph Bancorp.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Capstar Financial and Randolph Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capstar Financial 0 3 1 0 2.25
Randolph Bancorp 0 1 0 0 2.00

Capstar Financial presently has a consensus target price of $16.50, indicating a potential downside of 1.84%. Given Capstar Financial’s stronger consensus rating and higher possible upside, equities analysts clearly believe Capstar Financial is more favorable than Randolph Bancorp.

Volatility and Risk

Capstar Financial has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Randolph Bancorp has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.

Institutional and Insider Ownership

30.3% of Capstar Financial shares are held by institutional investors. Comparatively, 34.4% of Randolph Bancorp shares are held by institutional investors. 13.6% of Capstar Financial shares are held by insiders. Comparatively, 8.3% of Randolph Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Capstar Financial pays an annual dividend of $0.20 per share and has a dividend yield of 1.2%. Randolph Bancorp does not pay a dividend. Capstar Financial pays out 16.8% of its earnings in the form of a dividend.

Profitability

This table compares Capstar Financial and Randolph Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Capstar Financial 12.70% 9.68% 1.21%
Randolph Bancorp 2.60% -0.79% -0.10%

Summary

Capstar Financial beats Randolph Bancorp on 12 of the 14 factors compared between the two stocks.

About Capstar Financial

CapStar Financial Holdings, Inc. operates as the bank holding company for CapStar Bank that provides banking services to consumer and corporate customers located primarily in Tennessee, the United States. It offers a range of deposit products and services, including demand deposits, interest-bearing transaction accounts, money market accounts, time and savings deposits, certificates of deposit, and CDARS reciprocal products. The company also provides commercial and consumer real estate, construction and land development, commercial and industrial, consumer, and other loans. In addition, it offers private banking and wealth management services for the owners and operators of business clients and other high net worth individuals; and correspondent banking services to community banks. Further, the company provides telephone and online banking, direct deposit, mobile banking, safe deposit boxes, remote deposit, and cash management services for individuals, and small and medium sized businesses. CapStar Financial Holdings, Inc. was founded in 2007 and is headquartered in Nashville, Tennessee.

About Randolph Bancorp

Randolph Bancorp, Inc. operates as the bank holding company for Envision Bank that provides financial services to individuals, families, and small to mid-size businesses in Massachusetts, Rhode Island, and southern New Hampshire. The company accepts checking, NOW, money market, and savings accounts, as well as certificate of deposits and IRAs. It also offers one- to four-family residential mortgage, commercial real estate, commercial and industrial, construction, and consumer loans; home equity loans and lines of credit; and investment securities. In addition, the company provides remote deposit capture products for business customers to meet their online banking needs. As of February 27, 2018, it operated six retail branch locations and loan operations centers in Andover and North Attleboro, Massachusetts; and five loan production offices in eastern Massachusetts. The company was founded in 1851 and is based in Stoughton, Massachusetts. Randolph Bancorp, Inc. is a subsidiary of Randolph Bancorp (MHC).

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