Richmond Mutual Bancorporation (NASDAQ:RMBI – Get Free Report) and Eastern Bankshares (NASDAQ:EBC – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
Valuation & Earnings
This table compares Richmond Mutual Bancorporation and Eastern Bankshares”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Richmond Mutual Bancorporation | $90.97 million | 1.59 | $11.58 million | $1.17 | 11.86 |
| Eastern Bankshares | $1.33 billion | 3.24 | $88.20 million | $0.41 | 49.78 |
Risk and Volatility
Richmond Mutual Bancorporation has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500. Comparatively, Eastern Bankshares has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and target prices for Richmond Mutual Bancorporation and Eastern Bankshares, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Richmond Mutual Bancorporation | 0 | 0 | 1 | 0 | 3.00 |
| Eastern Bankshares | 0 | 3 | 3 | 0 | 2.50 |
Eastern Bankshares has a consensus target price of $22.13, suggesting a potential upside of 8.40%. Given Eastern Bankshares’ higher possible upside, analysts plainly believe Eastern Bankshares is more favorable than Richmond Mutual Bancorporation.
Profitability
This table compares Richmond Mutual Bancorporation and Eastern Bankshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Richmond Mutual Bancorporation | 12.73% | 8.61% | 0.76% |
| Eastern Bankshares | 8.32% | 8.62% | 1.26% |
Insider and Institutional Ownership
26.5% of Richmond Mutual Bancorporation shares are owned by institutional investors. Comparatively, 71.7% of Eastern Bankshares shares are owned by institutional investors. 8.2% of Richmond Mutual Bancorporation shares are owned by company insiders. Comparatively, 1.1% of Eastern Bankshares shares are owned by company 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.
Dividends
Richmond Mutual Bancorporation pays an annual dividend of $0.60 per share and has a dividend yield of 4.3%. Eastern Bankshares pays an annual dividend of $0.52 per share and has a dividend yield of 2.5%. Richmond Mutual Bancorporation pays out 51.3% of its earnings in the form of a dividend. Eastern Bankshares pays out 126.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Richmond Mutual Bancorporation has increased its dividend for 1 consecutive years and Eastern Bankshares has increased its dividend for 5 consecutive years. Richmond Mutual Bancorporation is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Eastern Bankshares beats Richmond Mutual Bancorporation on 11 of the 17 factors compared between the two stocks.
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.
About Eastern Bankshares
Eastern Bankshares, Inc. operates as the bank holding company for Eastern Bank that provides banking products and services primarily to retail, commercial, and small business customers. The company provides deposit accounts, interest checking accounts, money market accounts, savings accounts, and time certificates of deposit accounts. It also offers commercial and industrial, commercial real estate and construction, small business, residential real estate, and home equity loans; lines of credit; and other consumer loans comprising unsecured personal lines of credit, overdraft protection, automobile loans, home improvement loans, airplane loans, and other personal loans. In addition, the company provides trust, financial planning and portfolio management, automated lock box collection, cash management, and account reconciliation services; personal, business, and employee benefits insurance products. Eastern Bankshares, Inc. was founded in 1818 and is headquartered in Boston, Massachusetts.
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