Richmond Mutual Bancorporation (NASDAQ:RMBI) and S&T Bancorp (NASDAQ:STBA) Head to Head Review

Richmond Mutual Bancorporation (NASDAQ:RMBI) and S&T Bancorp (NASDAQ:STBA) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.

Dividends

Richmond Mutual Bancorporation pays an annual dividend of $0.60 per share and has a dividend yield of 4.0%. S&T Bancorp pays an annual dividend of $1.44 per share and has a dividend yield of 3.2%. Richmond Mutual Bancorporation pays out 48.0% of its earnings in the form of a dividend. S&T Bancorp pays out 40.3% 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 raised its dividend for 1 consecutive years and S&T Bancorp has raised its dividend for 13 consecutive years.

Profitability

This table compares Richmond Mutual Bancorporation and S&T Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Richmond Mutual Bancorporation	13.56%	8.89%	0.82%
S&T Bancorp	23.71%	9.35%	1.38%

Volatility and Risk

Richmond Mutual Bancorporation has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, S&T Bancorp has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Insider & Institutional Ownership

26.5% of Richmond Mutual Bancorporation shares are owned by institutional investors. Comparatively, 65.2% of S&T Bancorp shares are owned by institutional investors. 8.2% of Richmond Mutual Bancorporation shares are owned by company insiders. Comparatively, 1.2% of S&T Bancorp 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.

Valuation & Earnings

This table compares Richmond Mutual Bancorporation and S&T Bancorp”s gross 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	1.75	$11.58 million	$1.25	12.13
S&T Bancorp	$568.51 million	2.87	$134.23 million	$3.57	12.45

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Richmond Mutual Bancorporation and S&T Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Richmond Mutual Bancorporation	0	0	1	0	3.00
S&T Bancorp	0	5	2	0	2.29

S&T Bancorp has a consensus target price of $44.40, suggesting a potential downside of 0.10%. Given S&T Bancorp’s higher probable upside, analysts plainly believe S&T Bancorp is more favorable than Richmond Mutual Bancorporation.

Summary

S&T Bancorp beats Richmond Mutual Bancorporation on 14 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 S&T Bancorp

S&T Bancorp, Inc. is a bank holding company, which engages in the provision of consumer, commercial, and small business banking services. It operates through the following segments: Commercial Real Estate, Commercial and Industrial, Commercial Construction, Business Banking, Consumer Real Estate, and Other Consumer. The Commercial Real Estate segment includes both owner-occupied properties and investment properties for various purposes such as hotels, retail, multifamily and health care. The Commercial and Industrial segment focuses on the companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing. The Commercial Construction segment refers to the finance construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes. The Business Banking segment is made to small businesses that are standard, non-complex products evaluated through a streamlined credit approval process that has been designed to maximize efficiency while maintaining high credit quality standards. The Consumer Real Estate segment offers first and second liens such as 1-4 family residential mortgages, home equity loans and home equity lines of credit. The Other Consumer segment consists of individuals that may be secured by assets other than 1-4 family residences, as well as unsecured loans. The company was founded on March 17, 1983 and is headquartered in Indiana, PA.