Red River Bancshares (NASDAQ:RRBI – Get Free Report) and MidWestOne Financial Group (NASDAQ:MOFG – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.
Valuation & Earnings
This table compares Red River Bancshares and MidWestOne Financial Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Red River Bancshares | $169.85 million | 4.00 | $42.76 million | $6.95 | 14.87 |
| MidWestOne Financial Group | $238.84 million | 4.26 | -$60.29 million | $2.81 | 17.55 |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Red River Bancshares and MidWestOne Financial Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Red River Bancshares | 0 | 3 | 1 | 0 | 2.25 |
| MidWestOne Financial Group | 0 | 2 | 1 | 0 | 2.33 |
Red River Bancshares currently has a consensus price target of $106.00, indicating a potential upside of 2.55%. MidWestOne Financial Group has a consensus price target of $50.00, indicating a potential upside of 1.40%. Given Red River Bancshares’ higher probable upside, analysts clearly believe Red River Bancshares is more favorable than MidWestOne Financial Group.
Risk & Volatility
Red River Bancshares has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500. Comparatively, MidWestOne Financial Group has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.
Profitability
This table compares Red River Bancshares and MidWestOne Financial Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Red River Bancshares | 26.25% | 12.47% | 1.39% |
| MidWestOne Financial Group | 16.66% | 10.22% | 0.96% |
Insider and Institutional Ownership
27.6% of Red River Bancshares shares are owned by institutional investors. Comparatively, 65.4% of MidWestOne Financial Group shares are owned by institutional investors. 16.6% of Red River Bancshares shares are owned by company insiders. Comparatively, 2.5% of MidWestOne Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Dividends
Red River Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 1.0%. MidWestOne Financial Group pays an annual dividend of $0.97 per share and has a dividend yield of 2.0%. Red River Bancshares pays out 14.4% of its earnings in the form of a dividend. MidWestOne Financial Group pays out 34.5% 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.
Summary
Red River Bancshares beats MidWestOne Financial Group on 9 of the 16 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 MidWestOne Financial Group
MidWestOne Financial Group, Inc. operates as the bank holding company for MidWestOne Bank that provides commercial and retail banking products and services to individuals, businesses, governmental units, and institutional customers. It offers range of deposit products, including noninterest bearing and interest bearing demand deposits, savings, money market, and time deposits accounts. The company also provides commercial, real estate, agricultural, credit card, and consumer loans; and financing arrangements, such as brokered deposits, term debt, subordinated debt, and equity. In addition, it offers trust and investment services comprising administering estates, trusts, and conservatorships; property and farm management, investment advisory, retail securities brokerage, financial planning, and custodial services; and licensed brokers services. Further, the company provides online and mobile banking, debit cards, automated teller machines, and safe deposit boxes. MidWestOne Financial Group, Inc. was founded in 1934 and is headquartered in Iowa City, Iowa.
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