First Financial Bankshares (NASDAQ:FFIN) & Red River Bancshares (NASDAQ:RRBI) Financial Comparison

Red River Bancshares (NASDAQ:RRBI) and First Financial Bankshares (NASDAQ:FFIN) 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

27.6% of Red River Bancshares shares are held by institutional investors. Comparatively, 69.8% of First Financial Bankshares shares are held by institutional investors. 15.9% of Red River Bancshares shares are held by company insiders. Comparatively, 4.2% of First Financial Bankshares 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.

Volatility and Risk

Red River Bancshares has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, First Financial Bankshares has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Dividends

Red River Bancshares pays an annual dividend of $0.60 per share and has a dividend yield of 0.7%. First Financial Bankshares pays an annual dividend of $0.76 per share and has a dividend yield of 2.5%. Red River Bancshares pays out 9.4% of its earnings in the form of a dividend. First Financial Bankshares pays out 42.9% 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. Red River Bancshares has increased its dividend for 3 consecutive years and First Financial Bankshares has increased its dividend for 15 consecutive years. First Financial Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Red River Bancshares and First Financial Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red River Bancshares	25.18%	12.58%	1.34%
First Financial Bankshares	30.43%	14.16%	1.72%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Red River Bancshares and First Financial Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red River Bancshares	0	0	2	1	3.33
First Financial Bankshares	0	3	1	0	2.25

Red River Bancshares presently has a consensus target price of $67.00, indicating a potential downside of 22.85%. First Financial Bankshares has a consensus target price of $38.00, indicating a potential upside of 26.33%. Given First Financial Bankshares’ higher probable upside, analysts plainly believe First Financial Bankshares is more favorable than Red River Bancshares.

Valuation and Earnings

This table compares Red River Bancshares and First Financial Bankshares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red River Bancshares	$169.85 million	3.36	$42.76 million	$6.39	13.59
First Financial Bankshares	$833.20 million	5.17	$253.58 million	$1.77	16.99

First Financial Bankshares has higher revenue and earnings than Red River Bancshares. Red River Bancshares 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 Red River Bancshares on 12 of the 18 factors compared between the two stocks.

About Red River Bancshares

Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit. In addition, the company provides treasury management, private banking, and brokerage; investment advisory, financial planning, and a suite of retirement plans; debit and credit cards, direct deposits, cashier's checks, and wire transfer services; online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and banking services in person, through ATMs, drive-through facilities, night deposits, telephone, mail, mobile banking, and remote deposits. Red River Bancshares, Inc. was incorporated in 1998 and is headquartered in Alexandria, Louisiana.

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.