Head to Head Survey: Flagstar Bank, National Association (NYSE:FLG) and Richmond Mutual Bancorporation (NASDAQ:RMBI)

Richmond Mutual Bancorporation (NASDAQ:RMBI) and Flagstar Bank, National Association (NYSE:FLG) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Richmond Mutual Bancorporation and Flagstar Bank, National Association’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Richmond Mutual Bancorporation	12.73%	8.61%	0.76%
Flagstar Bank, National Association	-3.68%	-1.60%	-0.13%

Volatility & Risk

Richmond Mutual Bancorporation has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Flagstar Bank, National Association has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Valuation and Earnings

This table compares Richmond Mutual Bancorporation and Flagstar Bank, National Association”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	1.64	$11.58 million	$1.17	12.23
Flagstar Bank, National Association	$4.81 billion	1.23	-$177.00 million	($0.51)	-27.96

Richmond Mutual Bancorporation has higher earnings, but lower revenue than Flagstar Bank, National Association. Flagstar Bank, National Association 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.

Insider & Institutional Ownership

26.5% of Richmond Mutual Bancorporation shares are held by institutional investors. Comparatively, 67.9% of Flagstar Bank, National Association shares are held by institutional investors. 8.2% of Richmond Mutual Bancorporation shares are held by insiders. Comparatively, 19.4% of Flagstar Bank, National Association shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Richmond Mutual Bancorporation pays an annual dividend of $0.60 per share and has a dividend yield of 4.2%. Flagstar Bank, National Association pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Richmond Mutual Bancorporation pays out 51.3% of its earnings in the form of a dividend. Flagstar Bank, National Association pays out -7.8% 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Richmond Mutual Bancorporation and Flagstar Bank, National Association, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Richmond Mutual Bancorporation	0	0	1	0	3.00
Flagstar Bank, National Association	2	7	5	0	2.21

Flagstar Bank, National Association has a consensus price target of $14.46, suggesting a potential upside of 1.41%. Given Flagstar Bank, National Association’s higher possible upside, analysts plainly believe Flagstar Bank, National Association is more favorable than Richmond Mutual Bancorporation.

Summary

Richmond Mutual Bancorporation beats Flagstar Bank, National Association on 10 of the 17 factors compared between the two stocks.

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.

About Flagstar Bank, National Association

Flagstar Financial, Inc. operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company’s deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit. Its loan products comprise multi-family loans; commercial real estate loans; acquisition, development, and construction loans; commercial and industrial loans; one-to-four family loans; specialty finance loans and leases; warehouse loans; and other loans, such as home equity lines of credit, boat and recreational vehicle indirect lending, point of sale consumer loans, and other consumer loans, including overdraft loans. The company offers cash management products; non-deposit investment and insurance products; and online banking, mobile banking, and bank-by-phone services. It primarily serves individuals, small and mid-size businesses, and professional associations. The company was formerly known as New York Community Bancorp, Inc. and changed its name to Flagstar Financial, Inc. in October 2024. Flagstar Financial, Inc. was founded in 1859 and is headquartered in Hicksville, New York.