Red River Bancshares (NASDAQ:RRBI) and Riverview Bancorp (NASDAQ:RVSB) Critical Comparison

Red River Bancshares (NASDAQ:RRBI) and Riverview Bancorp (NASDAQ:RVSB) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Risk and Volatility

Red River Bancshares has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500. Comparatively, Riverview Bancorp has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.

Profitability

This table compares Red River Bancshares and Riverview Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red River Bancshares	26.25%	12.47%	1.39%
Riverview Bancorp	-5.87%	3.12%	0.32%

Dividends

Red River Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 1.0%. Riverview Bancorp pays an annual dividend of $0.08 per share and has a dividend yield of 1.3%. Red River Bancshares pays out 14.4% of its earnings in the form of a dividend. Riverview Bancorp pays out -42.1% 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. Red River Bancshares has increased its dividend for 3 consecutive years. Riverview Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current recommendations and price targets for Red River Bancshares and Riverview Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red River Bancshares	0	3	1	0	2.25
Riverview Bancorp	1	1	0	0	1.50

Red River Bancshares currently has a consensus target price of $106.00, suggesting a potential upside of 6.14%. Given Red River Bancshares’ stronger consensus rating and higher probable upside, equities analysts plainly believe Red River Bancshares is more favorable than Riverview Bancorp.

Earnings and Valuation

This table compares Red River Bancshares and Riverview Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red River Bancshares	$169.85 million	3.87	$42.76 million	$6.95	14.37
Riverview Bancorp	$64.74 million	1.83	-$4.34 million	($0.19)	-31.32

Red River Bancshares has higher revenue and earnings than Riverview Bancorp. Riverview Bancorp is trading at a lower price-to-earnings ratio than Red River Bancshares, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

27.6% of Red River Bancshares shares are held by institutional investors. Comparatively, 69.6% of Riverview Bancorp shares are held by institutional investors. 16.6% of Red River Bancshares shares are held by insiders. Comparatively, 3.9% of Riverview Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Red River Bancshares beats Riverview Bancorp on 13 of the 17 factors compared between the two stocks.

About Red River Bancshares

Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit. In addition, the company provides treasury management, private banking, and brokerage; investment advisory, financial planning, and a suite of retirement plans; debit and credit cards, direct deposits, cashier's checks, and wire transfer services; online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and banking services in person, through ATMs, drive-through facilities, night deposits, telephone, mail, mobile banking, and remote deposits. Red River Bancshares, Inc. was incorporated in 1998 and is headquartered in Alexandria, Louisiana.

About Riverview Bancorp

Riverview Bancorp, Inc. operates as a bank holding company for Riverview Bank that provides commercial banking services to small and medium size businesses, professionals, and wealth building individuals. It offers a range of deposit products, including demand deposits, negotiable order of withdrawal accounts, money market accounts, savings accounts, certificates of deposit, and retirement savings plans. The company also provides commercial business, commercial and residential real estate, multi-family real estate, land, real estate construction, and one-to-four family mortgage loans; other consumer loans, such as automobile, boat, motorcycle, recreational vehicle, savings account, and unsecured loans; and home equity lines of credit. In addition, it is involved in the provision of mortgage brokerage and mortgage loan servicing activities, as well as offers asset management services comprising trust, estate planning, and investment management. The company operates in Camas, Washougal, Stevenson, White Salmon, Battle Ground, Goldendale, Ridgefield, and Vancouver, Washington, as well as Portland, Gresham, Tualatin, and Aumsville, Oregon. Riverview Bancorp, Inc. was founded in 1923 and is based in Vancouver, Washington.