Critical Analysis: Richmond Mutual Bancorporation (NASDAQ:RMBI) and Republic Bancorp (NASDAQ:RBCAA)

Republic Bancorp (NASDAQ:RBCAA) and Richmond Mutual Bancorporation (NASDAQ:RMBI) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Dividends

Republic Bancorp pays an annual dividend of $1.98 per share and has a dividend yield of 2.1%. Richmond Mutual Bancorporation pays an annual dividend of $0.60 per share and has a dividend yield of 3.9%. Republic Bancorp pays out 30.2% of its earnings in the form of a dividend. Richmond Mutual Bancorporation pays out 49.6% 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. Republic Bancorp has raised its dividend for 27 consecutive years and Richmond Mutual Bancorporation has raised its dividend for 1 consecutive years.

Risk and Volatility

Republic Bancorp has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Richmond Mutual Bancorporation has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500.

Valuation & Earnings

This table compares Republic Bancorp 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
Republic Bancorp	$521.34 million	3.53	$131.32 million	$6.55	14.30
Richmond Mutual Bancorporation	$90.97 million	2.84	$11.58 million	$1.21	12.76

Republic Bancorp has higher revenue and earnings than Richmond Mutual Bancorporation. Richmond Mutual Bancorporation is trading at a lower price-to-earnings ratio than Republic Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Republic Bancorp and Richmond Mutual Bancorporation, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Republic Bancorp	0	3	1	0	2.25
Richmond Mutual Bancorporation	0	0	1	0	3.00

Republic Bancorp currently has a consensus price target of $98.00, indicating a potential upside of 4.60%. Given Republic Bancorp’s higher probable upside, equities research analysts clearly believe Republic Bancorp is more favorable than Richmond Mutual Bancorporation.

Profitability

This table compares Republic Bancorp and Richmond Mutual Bancorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Republic Bancorp	25.38%	11.20%	1.77%
Richmond Mutual Bancorporation	13.00%	8.30%	0.79%

Insider & Institutional Ownership

24.4% of Republic Bancorp shares are held by institutional investors. Comparatively, 26.5% of Richmond Mutual Bancorporation shares are held by institutional investors. 55.9% of Republic Bancorp shares are held by insiders. Comparatively, 8.2% of Richmond Mutual Bancorporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Republic Bancorp beats Richmond Mutual Bancorporation on 13 of the 16 factors compared between the two stocks.

About Republic Bancorp

Republic Bancorp, Inc. operates as a bank holding company for Republic Bank & Trust Company that provides various banking products and services in the United States. It operates in six segments: Traditional Banking, Warehouse, Mortgage Banking, Tax Refund Solutions, Republic Payment Solutions, and Republic Credit Solutions. The company offers demand, money market accounts, savings, individual retirement accounts, time, brokered, and other certificates of deposit; and retail and commercial mortgage, construction and land development, consumer, aircraft, and marine loans. It also provides credit cards; title insurance and other financial products and services; and private banking, lockbox processing, remote deposit capture, business online banking, account reconciliation, automated clearing house processing, and internet and mobile banking services. In addition, it offers short-term and revolving credit facilities to mortgage bankers through mortgage warehouse lines of credit; mortgage banking; tax refund solutions, which facilitate the receipt and payment of federal and state tax refund products through third-party tax preparers and tax-preparation software providers; payments-related products and services to consumers through third party service providers; and consumer credit products. The company offers its services through full-services banking centers in Kentucky, Indiana, Florida, Ohio, and Tennessee. Republic Bancorp, Inc. was incorporated in 1974 and is headquartered in Louisville, Kentucky.

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.