Head-To-Head Review: Rhinebeck Bancorp (NASDAQ:RBKB) & Fidelity D&D Bancorp (NASDAQ:FDBC)

Fidelity D&D Bancorp (NASDAQ:FDBC) and Rhinebeck Bancorp (NASDAQ:RBKB) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Earnings & Valuation

This table compares Fidelity D&D Bancorp and Rhinebeck Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelity D&D Bancorp	$140.40 million	2.13	$28.20 million	$5.12	10.04
Rhinebeck Bancorp	$75.84 million	2.60	$10.05 million	$0.91	19.40

Fidelity D&D Bancorp has higher revenue and earnings than Rhinebeck Bancorp. Fidelity D&D Bancorp is trading at a lower price-to-earnings ratio than Rhinebeck Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for Fidelity D&D Bancorp and Rhinebeck Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelity D&D Bancorp	0	1	0	0	2.00
Rhinebeck Bancorp	0	0	1	0	3.00

Institutional and Insider Ownership

20.1% of Fidelity D&D Bancorp shares are owned by institutional investors. Comparatively, 23.9% of Rhinebeck Bancorp shares are owned by institutional investors. 20.7% of Fidelity D&D Bancorp shares are owned by company insiders. Comparatively, 3.0% of Rhinebeck Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Fidelity D&D Bancorp has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Rhinebeck Bancorp has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500.

Profitability

This table compares Fidelity D&D Bancorp and Rhinebeck Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fidelity D&D Bancorp	20.78%	12.75%	1.07%
Rhinebeck Bancorp	13.20%	7.42%	0.77%

Summary

Fidelity D&D Bancorp beats Rhinebeck Bancorp on 8 of the 13 factors compared between the two stocks.

About Fidelity D&D Bancorp

Fidelity D&D Bancorp, Inc. is a holding company, which engages in the provision of commercial banking services. It operates through the following segments: Commercial and Industrial, Commercial Real Estate, Consumer, and Residential Real Estate. The Commercial and Industrial segment refers to identified historic and/or the projected cash flows of the borrower and secondarily to the underlying collateral provided by the borrower. The Commercial Real Estate segment offers finances purchase of real estate, refinance existing obligations, and/or to provide capital. The Consumer segment includes home equity installment loans and lines of credit. The Residential Real Estate segment operates as a secured first lien position of the borrower’s residential real estate. The company was founded in 1902 and is headquartered in Dunmore, PA.

About Rhinebeck Bancorp

Rhinebeck Bancorp, Inc. operates as the bank holding company for Rhinebeck Bank that provides banking and financial products and services to consumer and commercial customers in the Hudson Valley region of New York. The company offers deposits, including non-interest-bearing demand, interest bearing demand, money market, commercial and personal checking, individual retirement, and saving accounts, as well as certificates of deposit. It also provides direct and indirect automobile loans; non-residential commercial real estate loans; commercial business loans, such as term loans, revolving lines of credit, and lines of credit; residential mortgage and construction, one- to four-family residential real estate, multi-family real estate, commercial construction, and land development loans; and other consumer loans consist of home equity loans and lines of credit. In addition, the company offers retail brokerage and advisory services; life insurance services; and invests in mutual funds, annuities, and other assets. Rhinebeck Bancorp, Inc. was founded in 1860 and is headquartered in Poughkeepsie, New York. Rhinebeck Bancorp, Inc. is a subsidiary of Rhinebeck Bancorp, MHC.