SB Financial Group (NASDAQ:SBFG – Get Free Report) and Richmond Mutual Bancorporation (NASDAQ:RMBI – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.
Insider & Institutional Ownership
66.7% of SB Financial Group shares are held by institutional investors. Comparatively, 26.5% of Richmond Mutual Bancorporation shares are held by institutional investors. 6.0% of SB Financial Group 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares SB Financial Group and Richmond Mutual Bancorporation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SB Financial Group | 17.22% | 11.52% | 1.04% |
| Richmond Mutual Bancorporation | 13.56% | 8.80% | 0.82% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SB Financial Group | 0 | 1 | 1 | 0 | 2.50 |
| Richmond Mutual Bancorporation | 0 | 0 | 1 | 0 | 3.00 |
Earnings & Valuation
This table compares SB Financial Group and Richmond Mutual Bancorporation”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SB Financial Group | $67.60 million | 2.03 | $13.97 million | $2.56 | 8.52 |
| Richmond Mutual Bancorporation | $90.97 million | 1.69 | $11.58 million | $1.25 | 11.70 |
SB Financial Group has higher earnings, but lower revenue than Richmond Mutual Bancorporation. SB Financial Group 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.
Volatility & Risk
SB Financial Group has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500. Comparatively, Richmond Mutual Bancorporation has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.
Dividends
SB Financial Group pays an annual dividend of $0.64 per share and has a dividend yield of 2.9%. Richmond Mutual Bancorporation pays an annual dividend of $0.60 per share and has a dividend yield of 4.1%. SB Financial Group pays out 25.0% of its earnings in the form of a dividend. Richmond Mutual Bancorporation pays out 48.0% 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. SB Financial Group has raised its dividend for 12 consecutive years and Richmond Mutual Bancorporation has raised its dividend for 1 consecutive years.
Summary
SB Financial Group beats Richmond Mutual Bancorporation on 9 of the 15 factors compared between the two stocks.
About SB Financial Group
SB Financial Group, Inc. operates as the financial holding company for the State Bank and Trust Company that provides a range of commercial banking and wealth management services to individual and corporate customers primarily in Ohio, Indiana, and Michigan. It offers checking, savings, money market accounts, as well as time certificates of deposit; and commercial, consumer, agricultural, and residential mortgage loans. The company also provides automatic teller machine, personal and corporate trust, commercial leasing, bank credit card, safe deposit box rental, internet banking, private client group, and other personalized banking products and services; and various trust and financial services comprising asset management services for individuals and corporate employee benefit plans, as well as brokerage services. In addition, it sells insurance products to retail and commercial customers. The company was formerly known as Rurban Financial Corp. and changed its name to SB Financial Group, Inc. in April 2013. SB Financial Group, Inc. was founded in 1902 and is based in Defiance, Ohio.
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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