Critical Survey: Riverview Bancorp (NASDAQ:RVSB) vs. West Bancorporation (NASDAQ:WTBA)

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

Dividends

West Bancorporation pays an annual dividend of $1.00 per share and has a dividend yield of 3.9%. Riverview Bancorp pays an annual dividend of $0.08 per share and has a dividend yield of 1.5%. West Bancorporation pays out 52.4% of its earnings in the form of a dividend. Riverview Bancorp pays out 34.8% 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.

Earnings & Valuation

This table compares West Bancorporation and Riverview Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
West Bancorporation	$202.45 million	2.13	$32.56 million	$1.91	13.32
Riverview Bancorp	$73.22 million	1.51	$4.90 million	$0.23	23.15

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

Profitability

This table compares West Bancorporation and Riverview Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
West Bancorporation	16.08%	14.59%	0.89%
Riverview Bancorp	6.41%	3.00%	0.32%

Risk & Volatility

West Bancorporation has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Riverview Bancorp has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Institutional & Insider Ownership

44.3% of West Bancorporation shares are held by institutional investors. Comparatively, 69.6% of Riverview Bancorp shares are held by institutional investors. 4.6% of West Bancorporation shares are held by company insiders. Comparatively, 3.3% of Riverview Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for West Bancorporation and Riverview Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
West Bancorporation	0	1	1	1	3.00
Riverview Bancorp	0	2	1	0	2.33

West Bancorporation currently has a consensus target price of $24.00, indicating a potential downside of 5.64%. Riverview Bancorp has a consensus target price of $7.00, indicating a potential upside of 31.48%. Given Riverview Bancorp’s higher probable upside, analysts clearly believe Riverview Bancorp is more favorable than West Bancorporation.

Summary

West Bancorporation beats Riverview Bancorp on 12 of the 16 factors compared between the two stocks.

About West Bancorporation

West Bancorporation, Inc. operates as the financial holding company provides community banking and trust services to individuals and small- to medium-sized businesses in the United States. It offers deposit services, including checking, savings, and money market accounts, as well as time certificates of deposit. The company also provides loan products comprising commercial real estate loans, construction and land development loans, commercial lines of credit, and commercial term loans; consumer loans, including loans extended to individuals for household, family, and other personal expenditures not secured by real estate; and 1-4 family residential mortgages and home equity loans. In addition, it offers online and mobile banking, treasury management services including cash management, client-generated automated clearing house transactions, remote deposit, and fraud protection services; merchant credit card processing and corporate credit cards; and administration of estates, conservatorships, personal trusts, and agency accounts. The company was founded in 1893 and is headquartered in West Des Moines, Iowa.

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.