Head to Head Analysis: Richmond Mutual Bancorporation (RMBI) and Its Peers

Richmond Mutual Bancorporation (NASDAQ:RMBI) is one of 920 publicly-traded companies in the “Banks” industry, but how does it contrast to its rivals? We will compare Richmond Mutual Bancorporation to similar businesses based on the strength of its risk, profitability, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Profitability

This table compares Richmond Mutual Bancorporation and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Richmond Mutual Bancorporation	13.00%	8.30%	0.79%
Richmond Mutual Bancorporation Competitors	15.72%	9.53%	0.93%

Volatility & Risk

Richmond Mutual Bancorporation has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, Richmond Mutual Bancorporation’s rivals have a beta of 0.61, suggesting that their average stock price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Richmond Mutual Bancorporation and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Richmond Mutual Bancorporation	0	0	1	0	3.00
Richmond Mutual Bancorporation Competitors	7462	30177	27736	1456	2.35

As a group, “Banks” companies have a potential upside of 15.85%. Given Richmond Mutual Bancorporation’s rivals higher possible upside, analysts plainly believe Richmond Mutual Bancorporation has less favorable growth aspects than its rivals.

Dividends

Richmond Mutual Bancorporation pays an annual dividend of $0.60 per share and has a dividend yield of 3.8%. Richmond Mutual Bancorporation pays out 49.6% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.4% and pay out 28.9% of their earnings in the form of a dividend. Richmond Mutual Bancorporation has raised its dividend for 1 consecutive years. Richmond Mutual Bancorporation lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

26.5% of Richmond Mutual Bancorporation shares are owned by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are owned by institutional investors. 8.2% of Richmond Mutual Bancorporation shares are owned by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Richmond Mutual Bancorporation and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Richmond Mutual Bancorporation	$66.83 million	$11.58 million	13.05
Richmond Mutual Bancorporation Competitors	$139.14 billion	$2.41 billion	16.82

Richmond Mutual Bancorporation’s rivals have higher revenue and earnings than Richmond Mutual Bancorporation. Richmond Mutual Bancorporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Richmond Mutual Bancorporation rivals beat Richmond Mutual Bancorporation on 13 of the 15 factors compared.

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.