Richmond Mutual Bancorporation (NASDAQ:RMBI) vs. Swedbank (OTCMKTS:SWDBY) Head to Head Comparison

Richmond Mutual Bancorporation (NASDAQ:RMBI – Get Free Report) and Swedbank (OTCMKTS:SWDBY – Get Free Report) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Insider & Institutional Ownership

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

Volatility and Risk

Richmond Mutual Bancorporation has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, Swedbank has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Dividends

Richmond Mutual Bancorporation pays an annual dividend of $0.60 per share and has a dividend yield of 3.9%. Swedbank pays an annual dividend of SEK 1.48 per share and has a dividend yield of 3.6%. Richmond Mutual Bancorporation pays out 49.6% of its earnings in the form of a dividend. Swedbank pays out 50.2% 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 raised 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Richmond Mutual Bancorporation 13.00% 8.30% 0.79%
Swedbank 29.45% 14.84% 0.99%

Analyst Recommendations

This is a summary of current recommendations and price targets for Richmond Mutual Bancorporation and Swedbank, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Richmond Mutual Bancorporation 0 0 1 0 3.00
Swedbank 3 2 1 0 1.67

Earnings and Valuation

This table compares Richmond Mutual Bancorporation and Swedbank”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Richmond Mutual Bancorporation $90.97 million 2.82 $11.58 million $1.21 12.66
Swedbank $11.08 billion 4.12 $3.35 billion SEK 2.95 13.77

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

Summary

Swedbank beats Richmond Mutual Bancorporation on 9 of the 15 factors compared between the two stocks.

About Richmond Mutual Bancorporation

(Get Free Report)

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.

About Swedbank

(Get Free Report)

Swedbank AB (publ) provides various banking products and services to private and corporate customers in Sweden, Estonia, Latvia, Lithuania, Norway, the United States, Finland, Denmark, Luxembourg, and China. The company operates through three business areas: Swedish Banking, Baltic Banking, and Corporates and Institutions. It offers savings accounts, mutual funds and insurance savings, pension savings, institutional asset management, and other savings and investment products; private residential lending, consumer financing, corporate lending, leasing, and other financing products, as well as trade finance and factoring services; and current accounts, cash handling, debit and credit cards, and card acquiring, as well as domestic, international, mobile, document, and other payment products. The company also provides equity trading, structured products, corporate finance, custody services, fixed income and currency trading, and other capital market products; and administrative services, treasury operations, real estate brokerage and management services, legal services, safe deposit boxes, and other services. In addition, it offers pension insurance and plan, life, endowment insurance, and personal insurance products; investment management, investment banking, and mortgage lending services; and transaction banking services comprising cash management, securities, account, and clearing and settlement services, as well as Internet and mobile banking services. The company was formerly known as ForeningsSparbanken AB and changed its name to Swedbank AB (publ) in September 2006. Swedbank AB (publ) was founded in 1820 and is headquartered in Sundbyberg, Sweden.

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