CPB (NYSE:CPF) and Richmond Mutual Bancorporation (NASDAQ:RMBI) Head to Head Analysis

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

Dividends

CPB pays an annual dividend of $1.20 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 3.9%. CPB pays out 38.5% of its earnings in the form of a dividend. Richmond Mutual Bancorporation pays out 49.6% 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. CPB has raised its dividend for 1 consecutive years and Richmond Mutual Bancorporation has raised its dividend for 1 consecutive years.

Volatility and Risk

CPB has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Richmond Mutual Bancorporation has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for CPB and Richmond Mutual Bancorporation, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CPB	0	3	3	0	2.50
Richmond Mutual Bancorporation	0	0	1	0	3.00

CPB currently has a consensus price target of $39.00, suggesting a potential upside of 9.38%. Given CPB’s higher possible upside, equities research analysts clearly believe CPB is more favorable than Richmond Mutual Bancorporation.

Insider & Institutional Ownership

88.4% of CPB shares are held by institutional investors. Comparatively, 26.5% of Richmond Mutual Bancorporation shares are held by institutional investors. 1.7% of CPB shares are held by insiders. Comparatively, 8.2% of Richmond Mutual Bancorporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares CPB and Richmond Mutual Bancorporation”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CPB	$365.98 million	2.51	$77.48 million	$3.12	11.43
Richmond Mutual Bancorporation	$90.97 million	2.82	$11.58 million	$1.21	12.66

CPB has higher revenue and earnings than Richmond Mutual Bancorporation. CPB 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CPB	22.52%	14.20%	1.13%
Richmond Mutual Bancorporation	13.00%	8.30%	0.79%

Summary

CPB beats Richmond Mutual Bancorporation on 11 of the 16 factors compared between the two stocks.

About CPB

Central Pacific Financial Corp. operates as the bank holding company for Central Pacific Bank that provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products and services, including checking, savings and time deposits, cash management and digital banking, trust, and retail brokerage services, as well as money market accounts and certificates of deposit. The company also provides various lending activities, such as commercial, commercial and residential mortgage, home equity, and consumer loans; and other products and services comprising debit cards, internet and mobile banking, cash management services, full-service ATMs, safe deposit boxes, international banking services, night depository facilities, foreign exchange, and wire transfers. In addition, it offers wealth management products and services that include non-deposit investment products, annuities, insurance, investment management, asset custody and general consultation, and planning services. The company was founded in 1954 and is headquartered in Honolulu, Hawaii.

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.