Pathward Financial (NASDAQ:CASH) versus Rhinebeck Bancorp (NASDAQ:RBKB) Critical Contrast

Rhinebeck Bancorp (NASDAQ:RBKB) and Pathward Financial (NASDAQ:CASH) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Profitability

This table compares Rhinebeck Bancorp and Pathward Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rhinebeck Bancorp	7.20%	6.47%	0.65%
Pathward Financial	22.45%	22.97%	2.57%

Valuation & Earnings

This table compares Rhinebeck Bancorp and Pathward Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rhinebeck Bancorp	$54.24 million	2.47	-$8.62 million	$0.46	26.13
Pathward Financial	$851.49 million	1.86	$185.87 million	$7.90	8.99

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

Institutional and Insider Ownership

23.9% of Rhinebeck Bancorp shares are held by institutional investors. Comparatively, 92.7% of Pathward Financial shares are held by institutional investors. 5.6% of Rhinebeck Bancorp shares are held by insiders. Comparatively, 1.2% of Pathward Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Rhinebeck Bancorp has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, Pathward Financial has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Rhinebeck Bancorp and Pathward Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rhinebeck Bancorp	0	1	0	0	2.00
Pathward Financial	0	1	2	0	2.67

Pathward Financial has a consensus target price of $91.00, suggesting a potential upside of 28.17%. Given Pathward Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Pathward Financial is more favorable than Rhinebeck Bancorp.

Summary

Pathward Financial beats Rhinebeck Bancorp on 11 of the 14 factors compared between the two stocks.

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.

About Pathward Financial

Pathward Financial, Inc. operates as the bank holding company for Pathward, National Association that provides various banking products and services in the United States. The company operates through three segments: Consumer, Commercial, and Corporate Services/Other. It offers demand deposit accounts, savings accounts, and money market savings accounts. The company also provides commercial finance product comprising term lending, asset-based lending, factoring, lease financing, insurance premium finance, government guaranteed lending, and other commercial finance products; consumer credit products; other consumer financing services; tax services, which includes short-term refund advance loans and short-term electronic return originator advance loans; and warehouse financing services. In addition, it issues prepaid cards; and offers payment solutions, such as acceptance, processing, and settlement of credit card and debit card payments. The company was formerly known as Meta Financial Group, Inc. and changed its name to Pathward Financial, Inc. in July 2022. Pathward Financial, Inc. was founded in 1954 and is based in Sioux Falls, South Dakota.