Head to Head Analysis: Richmond Mutual Bancorporation (NASDAQ:RMBI) vs. Camden National (NASDAQ:CAC)

Camden National (NASDAQ:CAC) and Richmond Mutual Bancorporation (NASDAQ:RMBI) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Dividends

Camden National pays an annual dividend of $1.68 per share and has a dividend yield of 3.4%. Richmond Mutual Bancorporation pays an annual dividend of $0.60 per share and has a dividend yield of 4.3%. Camden National pays out 43.8% of its earnings in the form of a dividend. Richmond Mutual Bancorporation pays out 51.3% 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. Richmond Mutual Bancorporation has increased its dividend for 1 consecutive years. Richmond Mutual Bancorporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Camden National and Richmond Mutual Bancorporation”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Camden National	$373.18 million	2.23	$65.16 million	$3.84	12.81
Richmond Mutual Bancorporation	$90.97 million	1.62	$11.58 million	$1.17	12.06

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

Volatility and Risk

Camden National has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Richmond Mutual Bancorporation has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Camden National and Richmond Mutual Bancorporation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Camden National	0	4	1	0	2.20
Richmond Mutual Bancorporation	0	0	1	0	3.00

Camden National presently has a consensus target price of $49.00, suggesting a potential downside of 0.39%. Given Camden National’s higher probable upside, equities research analysts plainly believe Camden National is more favorable than Richmond Mutual Bancorporation.

Profitability

This table compares Camden National and Richmond Mutual Bancorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Camden National	17.46%	11.39%	1.07%
Richmond Mutual Bancorporation	12.73%	8.61%	0.76%

Institutional & Insider Ownership

77.4% of Camden National shares are held by institutional investors. Comparatively, 26.5% of Richmond Mutual Bancorporation shares are held by institutional investors. 1.7% of Camden National shares are held by company insiders. Comparatively, 8.2% of Richmond Mutual Bancorporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Camden National beats Richmond Mutual Bancorporation on 12 of the 16 factors compared between the two stocks.

About Camden National

Camden National Corporation operates as the bank holding company for Camden National Bank that provides various commercial and consumer banking products and services for consumer, institutional, municipal, non-profit, and commercial customers in Maine, New Hampshire, and Massachusetts. The company accepts checking, savings, time, and brokered deposits, as well as deposits with the certificate of deposit account registry system. Its loan products include non-owner-occupied commercial estate loans, owner-occupied commercial real estate loans, unsecured fully-guaranteed commercial loans backed by the small business administration, loans secured by one-to four-family properties, and consumer and home equity loans. The company also provides brokerage and insurance services through its financial offerings consisting of college, retirement, estate planning, mutual funds, strategic asset management accounts, and variable and fixed annuities. Further, it offers a range of fiduciary and asset management, wealth management, investment management, financial planning, and trustee services. Camden National Corporation was founded in 1875 and is headquartered in Camden, Maine.

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.