Richmond Mutual Bancorporation (NASDAQ:RMBI) & SB Financial Group (NASDAQ:SBFG) Financial Survey

SB Financial Group (NASDAQ:SBFG) and Richmond Mutual Bancorporation (NASDAQ:RMBI) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.

Volatility and Risk

SB Financial Group has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500. Comparatively, Richmond Mutual Bancorporation has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for SB Financial Group and Richmond Mutual Bancorporation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SB Financial Group	0	1	1	0	2.50
Richmond Mutual Bancorporation	0	0	1	0	3.00

Valuation & Earnings

This table compares SB Financial Group and Richmond Mutual Bancorporation”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SB Financial Group	$91.03 million	1.52	$13.97 million	$2.56	8.59
Richmond Mutual Bancorporation	$90.97 million	1.69	$11.58 million	$1.25	11.73

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

Dividends

SB Financial Group pays an annual dividend of $0.64 per share and has a dividend yield of 2.9%. Richmond Mutual Bancorporation pays an annual dividend of $0.60 per share and has a dividend yield of 4.1%. SB Financial Group pays out 25.0% of its earnings in the form of a dividend. Richmond Mutual Bancorporation pays out 48.0% 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. SB Financial Group has increased its dividend for 12 consecutive years and Richmond Mutual Bancorporation has increased its dividend for 1 consecutive years.

Institutional and Insider Ownership

66.7% of SB Financial Group shares are owned by institutional investors. Comparatively, 26.5% of Richmond Mutual Bancorporation shares are owned by institutional investors. 6.0% of SB Financial Group shares are owned by company insiders. Comparatively, 8.2% of Richmond Mutual Bancorporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares SB Financial Group and Richmond Mutual Bancorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SB Financial Group	17.22%	11.52%	1.04%
Richmond Mutual Bancorporation	13.56%	8.80%	0.82%

Summary

SB Financial Group beats Richmond Mutual Bancorporation on 9 of the 15 factors compared between the two stocks.

About SB Financial Group

SB Financial Group, Inc. operates as the financial holding company for the State Bank and Trust Company that provides a range of commercial banking and wealth management services to individual and corporate customers primarily in Ohio, Indiana, and Michigan. It offers checking, savings, money market accounts, as well as time certificates of deposit; and commercial, consumer, agricultural, and residential mortgage loans. The company also provides automatic teller machine, personal and corporate trust, commercial leasing, bank credit card, safe deposit box rental, internet banking, private client group, and other personalized banking products and services; and various trust and financial services comprising asset management services for individuals and corporate employee benefit plans, as well as brokerage services. In addition, it sells insurance products to retail and commercial customers. The company was formerly known as Rurban Financial Corp. and changed its name to SB Financial Group, Inc. in April 2013. SB Financial Group, Inc. was founded in 1902 and is based in Defiance, Ohio.

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.