Head to Head Contrast: Parke Bancorp (NASDAQ:PKBK) and Red River Bancshares (NASDAQ:RRBI)

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red River Bancshares	0	3	0	1	2.50
Parke Bancorp	0	0	1	0	3.00

Red River Bancshares presently has a consensus target price of $106.00, suggesting a potential upside of 5.71%. Given Red River Bancshares’ higher probable upside, research analysts clearly believe Red River Bancshares is more favorable than Parke Bancorp.

Volatility and Risk

Red River Bancshares has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. Comparatively, Parke Bancorp has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Earnings and Valuation

This table compares Red River Bancshares and Parke Bancorp”s top-line 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	3.88	$42.76 million	$6.95	14.43
Parke Bancorp	$146.08 million	2.59	$37.78 million	$3.84	8.38

Red River Bancshares has higher revenue and earnings than Parke Bancorp. Parke 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.

Insider & Institutional Ownership

27.6% of Red River Bancshares shares are owned by institutional investors. Comparatively, 49.7% of Parke Bancorp shares are owned by institutional investors. 16.6% of Red River Bancshares shares are owned by insiders. Comparatively, 13.0% of Parke Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Red River Bancshares and Parke 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%
Parke Bancorp	29.99%	13.88%	2.05%

Dividends

Red River Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 1.0%. Parke Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.5%. Red River Bancshares pays out 14.4% of its earnings in the form of a dividend. Parke Bancorp pays out 20.8% 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. Red River Bancshares has raised its dividend for 3 consecutive years.

Summary

Red River Bancshares beats Parke Bancorp on 10 of the 18 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 Parke Bancorp

Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company offers various deposit products, including checking, savings, time, money market, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans. In addition, the company provides debit cards, internet banking, and online bill payment services. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.