Analyzing Red River Bancshares (NASDAQ:RRBI) and Blue Foundry Bancorp (NASDAQ:BLFY)

Blue Foundry Bancorp (NASDAQ:BLFY) and Red River Bancshares (NASDAQ:RRBI) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent ratings for Blue Foundry Bancorp and Red River Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Foundry Bancorp	1	0	0	0	1.00
Red River Bancshares	0	3	0	1	2.50

Red River Bancshares has a consensus price target of $106.00, suggesting a potential upside of 4.69%. Given Red River Bancshares’ stronger consensus rating and higher possible upside, analysts plainly believe Red River Bancshares is more favorable than Blue Foundry Bancorp.

Profitability

This table compares Blue Foundry Bancorp and Red River Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blue Foundry Bancorp	-9.82%	-2.84%	-0.44%
Red River Bancshares	26.25%	12.47%	1.39%

Institutional and Insider Ownership

56.5% of Blue Foundry Bancorp shares are owned by institutional investors. Comparatively, 27.6% of Red River Bancshares shares are owned by institutional investors. 5.3% of Blue Foundry Bancorp shares are owned by insiders. Comparatively, 16.6% of Red River Bancshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Blue Foundry Bancorp has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Red River Bancshares has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Valuation and Earnings

This table compares Blue Foundry Bancorp and Red River Bancshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Foundry Bancorp	$49.07 million	5.60	-$11.91 million	($0.46)	-28.78
Red River Bancshares	$169.85 million	3.92	$42.76 million	$6.95	14.57

Red River Bancshares has higher revenue and earnings than Blue Foundry Bancorp. Blue Foundry Bancorp is trading at a lower price-to-earnings ratio than Red River Bancshares, indicating that it is currently the more affordable of the two stocks.

Summary

Red River Bancshares beats Blue Foundry Bancorp on 11 of the 14 factors compared between the two stocks.

About Blue Foundry Bancorp

Blue Foundry Bancorp operates as a bank holding company for Blue Foundry Bank, a savings bank that offers various banking products and services for individuals and businesses in the United States. The company offers saving, time, and non-interest bearing deposits; demand accounts; and loans, such as one-to-four family residential property, multi-family, residential real estate, non-residential real estate, consumer, construction, and commercial and industrial loans, as well as junior liens and home equity lines of credit. The company was formerly known as Boiling Springs Bancorp and changed its name to Blue Foundry Bancorp in July 2019. Blue Foundry Bancorp was founded in 1939 and is based in Rutherford, New Jersey.

About Red River Bancshares

Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit. In addition, the company provides treasury management, private banking, and brokerage; investment advisory, financial planning, and a suite of retirement plans; debit and credit cards, direct deposits, cashier's checks, and wire transfer services; online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and banking services in person, through ATMs, drive-through facilities, night deposits, telephone, mail, mobile banking, and remote deposits. Red River Bancshares, Inc. was incorporated in 1998 and is headquartered in Alexandria, Louisiana.