Richmond Mutual Bancorporation (NASDAQ:RMBI) vs. Horizon Bancorp (IN) (NASDAQ:HBNC) Head to Head Review

Horizon Bancorp (IN) (NASDAQ:HBNC) 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 valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Risk & Volatility

Horizon Bancorp (IN) has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Richmond Mutual Bancorporation has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500.

Insider and Institutional Ownership

64.5% of Horizon Bancorp (IN) shares are held by institutional investors. Comparatively, 26.5% of Richmond Mutual Bancorporation shares are held by institutional investors. 2.8% of Horizon Bancorp (IN) shares are held by company insiders. Comparatively, 8.2% of Richmond Mutual Bancorporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Horizon Bancorp (IN) and Richmond Mutual Bancorporation”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Horizon Bancorp (IN)	$405.46 million	2.21	-$150.48 million	($3.15)	-5.55
Richmond Mutual Bancorporation	$90.97 million	1.59	$11.58 million	$1.17	11.86

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

Profitability

This table compares Horizon Bancorp (IN) and Richmond Mutual Bancorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Horizon Bancorp (IN)	-37.12%	11.56%	1.17%
Richmond Mutual Bancorporation	12.73%	8.61%	0.76%

Analyst Ratings

This is a summary of current ratings and price targets for Horizon Bancorp (IN) and Richmond Mutual Bancorporation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Horizon Bancorp (IN)	1	2	2	0	2.20
Richmond Mutual Bancorporation	0	0	1	0	3.00

Horizon Bancorp (IN) currently has a consensus price target of $20.33, suggesting a potential upside of 16.26%. Given Horizon Bancorp (IN)’s higher probable upside, analysts plainly believe Horizon Bancorp (IN) is more favorable than Richmond Mutual Bancorporation.

Dividends

Horizon Bancorp (IN) pays an annual dividend of $0.64 per share and has a dividend yield of 3.7%. Richmond Mutual Bancorporation pays an annual dividend of $0.60 per share and has a dividend yield of 4.3%. Horizon Bancorp (IN) pays out -20.3% of its earnings in the form of a dividend. Richmond Mutual Bancorporation pays out 51.3% 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. 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 longer track record of dividend growth.

Summary

Horizon Bancorp (IN) beats Richmond Mutual Bancorporation on 9 of the 17 factors compared between the two stocks.

About Horizon Bancorp (IN)

Horizon Bancorp, Inc. operates as the bank holding company for Horizon Bank that engages in the provision of commercial and retail banking services. The company offers checking, saving, money market, certificate of deposits, individual retirement accounts, and time deposits, as well as non-interest- and interest-bearing demand deposits. It also provides commercial, residential real estate, mortgage, home equity, auto, personal, business, agricultural, and SBA loans, as well as credit cards. In addition, the company offers corporate and individual trust and agency, investment management, and real estate investment trust services; debit cards; treasury management; online and mobile banking; wealth, retirement, and estate and trust services; and sells various insurance products. It operates through full-service offices in northern and central Indiana and southern and central Michigan. Horizon Bancorp, Inc. was founded in 1873 and is headquartered in Michigan City, Indiana.

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.