Randolph Bancorp (NASDAQ:RNDB) and Fifth Third Bancorp (NASDAQ:FITB) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Risk and Volatility

Randolph Bancorp has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, Fifth Third Bancorp has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Dividends

Fifth Third Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 3.2%. Randolph Bancorp does not pay a dividend. Fifth Third Bancorp pays out 34.6% of its earnings in the form of a dividend. Fifth Third Bancorp has raised its dividend for 2 consecutive years.

Profitability

This table compares Randolph Bancorp and Fifth Third Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Randolph Bancorp -3.84% -4.01% -0.53%
Fifth Third Bancorp 26.80% 11.77% 1.24%

Insider & Institutional Ownership

35.4% of Randolph Bancorp shares are owned by institutional investors. Comparatively, 81.8% of Fifth Third Bancorp shares are owned by institutional investors. 8.3% of Randolph Bancorp shares are owned by insiders. Comparatively, 0.4% of Fifth Third Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Randolph Bancorp and Fifth Third Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Randolph Bancorp 0 1 0 0 2.00
Fifth Third Bancorp 0 8 8 0 2.50

Fifth Third Bancorp has a consensus target price of $31.38, suggesting a potential upside of 15.85%. Given Fifth Third Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Fifth Third Bancorp is more favorable than Randolph Bancorp.

Valuation & Earnings

This table compares Randolph Bancorp and Fifth Third Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Randolph Bancorp $34.97 million 2.53 -$2.09 million N/A N/A
Fifth Third Bancorp $7.97 billion 2.50 $2.19 billion $2.54 10.67

Fifth Third Bancorp has higher revenue and earnings than Randolph Bancorp.

Summary

Fifth Third Bancorp beats Randolph Bancorp on 12 of the 15 factors compared between the two stocks.

Randolph Bancorp Company Profile

Randolph Bancorp, Inc. operates as the bank holding company for Envision Bank that provides financial services to individuals, families, and small to mid-size businesses in Massachusetts, Rhode Island, and southern New Hampshire. The company accepts checking, NOW, money market, and savings accounts, as well as certificate of deposits and IRAs. It also offers one- to four-family residential mortgage, commercial real estate, commercial and industrial, construction, and consumer loans; home equity loans and lines of credit; and investment securities. In addition, the company provides remote deposit capture products for business customers to meet their online banking needs. As of February 27, 2018, it operated six retail branch locations and loan operations centers in Andover and North Attleboro, Massachusetts; and five loan production offices in eastern Massachusetts. The company was founded in 1851 and is based in Stoughton, Massachusetts. Randolph Bancorp, Inc. is a subsidiary of Randolph Bancorp (MHC).

Fifth Third Bancorp Company Profile

Fifth Third Bancorp operates as a diversified financial services company in the United States. The company's Commercial Banking segment offers credit intermediation, cash management, and financial services; lending and depository products; and cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing, and syndicated finance for business, government, and professional customers. Its Branch Banking segment provides a range of deposit and loan products to individuals and small businesses. This segment offers checking and savings accounts, home equity loans and lines of credit, credit cards, and loans for automobiles and personal financing needs, as well as cash management services for small businesses. The company's Consumer Lending segment engages in direct lending activities that include origination, retention, and servicing of residential mortgage and home equity loans or lines of credit; and indirect lending activities, including loans to consumers through correspondent lenders and automobile dealers. Fifth Third Bancorp's Wealth & Asset Management segment provides various investment alternatives for individuals, companies, and not-for-profit organizations. It offers retail brokerage services to individual clients; and broker dealer services to the institutional marketplace. This segment also provides asset management services; holistic strategies to affluent clients in wealth planning, investing, insurance, and wealth protection; and advisory services for institutional clients comprising states and municipalities. As of December 31, 2018, the company operated 1,121 full-service banking centers and 2,419 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, and North Carolina. Fifth Third Bancorp was founded in 1858 and is headquartered in Cincinnati, Ohio.

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