Eastern Bankshares (NASDAQ:EBC – Get Free Report) and Richmond Mutual Bancorporation (NASDAQ:RMBI – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Dividends
Eastern Bankshares pays an annual dividend of $0.52 per share and has a dividend yield of 2.6%. Richmond Mutual Bancorporation pays an annual dividend of $0.60 per share and has a dividend yield of 4.2%. Eastern Bankshares pays out 126.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Richmond Mutual Bancorporation pays out 51.3% of its earnings in the form of a dividend. Eastern Bankshares has increased its dividend for 5 consecutive years and Richmond Mutual Bancorporation has increased its dividend for 1 consecutive years. Richmond Mutual Bancorporation is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares Eastern Bankshares and Richmond Mutual Bancorporation”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Eastern Bankshares | $721.90 million | 5.92 | $88.20 million | $0.41 | 49.44 |
| Richmond Mutual Bancorporation | $48.91 million | 3.02 | $11.58 million | $1.17 | 12.09 |
Eastern Bankshares has higher revenue and earnings than Richmond Mutual Bancorporation. Richmond Mutual Bancorporation is trading at a lower price-to-earnings ratio than Eastern Bankshares, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Eastern Bankshares and Richmond Mutual Bancorporation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Eastern Bankshares | 8.32% | 8.62% | 1.26% |
| Richmond Mutual Bancorporation | 12.73% | 8.61% | 0.76% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Eastern Bankshares and Richmond Mutual Bancorporation, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eastern Bankshares | 0 | 3 | 3 | 0 | 2.50 |
| Richmond Mutual Bancorporation | 0 | 0 | 1 | 0 | 3.00 |
Eastern Bankshares currently has a consensus price target of $22.13, suggesting a potential upside of 9.15%. Given Eastern Bankshares’ higher probable upside, equities research analysts clearly believe Eastern Bankshares is more favorable than Richmond Mutual Bancorporation.
Volatility & Risk
Eastern Bankshares has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Richmond Mutual Bancorporation has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500.
Insider & Institutional Ownership
71.7% of Eastern Bankshares shares are owned by institutional investors. Comparatively, 26.5% of Richmond Mutual Bancorporation shares are owned by institutional investors. 1.1% of Eastern Bankshares shares are owned by company insiders. Comparatively, 8.2% of Richmond Mutual Bancorporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Eastern Bankshares beats Richmond Mutual Bancorporation on 11 of the 17 factors compared between the two stocks.
About Eastern Bankshares
Eastern Bankshares, Inc. operates as the bank holding company for Eastern Bank that provides banking products and services primarily to retail, commercial, and small business customers. The company provides deposit accounts, interest checking accounts, money market accounts, savings accounts, and time certificates of deposit accounts. It also offers commercial and industrial, commercial real estate and construction, small business, residential real estate, and home equity loans; lines of credit; and other consumer loans comprising unsecured personal lines of credit, overdraft protection, automobile loans, home improvement loans, airplane loans, and other personal loans. In addition, the company provides trust, financial planning and portfolio management, automated lock box collection, cash management, and account reconciliation services; personal, business, and employee benefits insurance products. Eastern Bankshares, Inc. was founded in 1818 and is headquartered in Boston, Massachusetts.
About Richmond Mutual Bancorporation
Richmond Mutual Bancorporation, Inc. operates as the bank holding company for First Bank Richmond that provides various banking services. It accepts various deposits, including savings deposit accounts, money market accounts, NOW and demand accounts, and certificates of deposit. The company also offers a range of lending products, such as multi-family and commercial real estate loans, commercial and industrial loans, construction and development loans, residential real estate loans, and consumer loans. In addition, it engages in the lease financing business; and provision of fee-based financial services comprising trust and estate administration, investment management, retirement plan administration, and private banking services. The company was founded in 1887 and is headquartered in Richmond, Indiana.
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