Head to Head Contrast: Rhinebeck Bancorp (NASDAQ:RBKB) vs. Shore Bancshares (NASDAQ:SHBI)

Rhinebeck Bancorp (NASDAQ:RBKB) and Shore Bancshares (NASDAQ:SHBI) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Rhinebeck Bancorp and Shore Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rhinebeck Bancorp	0	1	0	0	2.00
Shore Bancshares	0	2	3	0	2.60

Shore Bancshares has a consensus price target of $20.17, suggesting a potential upside of 0.68%. Given Shore Bancshares’ stronger consensus rating and higher possible upside, analysts plainly believe Shore Bancshares is more favorable than Rhinebeck Bancorp.

Valuation & Earnings

This table compares Rhinebeck Bancorp and Shore Bancshares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rhinebeck Bancorp	$75.84 million	1.88	$10.05 million	$0.92	13.90
Shore Bancshares	$342.72 million	1.95	$59.51 million	$1.78	11.25

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

Volatility and Risk

Rhinebeck Bancorp has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500. Comparatively, Shore Bancshares has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.

Insider & Institutional Ownership

23.9% of Rhinebeck Bancorp shares are held by institutional investors. Comparatively, 59.8% of Shore Bancshares shares are held by institutional investors. 5.6% of Rhinebeck Bancorp shares are held by insiders. Comparatively, 8.7% of Shore Bancshares shares are held 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.

Profitability

This table compares Rhinebeck Bancorp and Shore Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rhinebeck Bancorp	13.24%	7.77%	0.78%
Shore Bancshares	17.36%	11.62%	1.07%

Summary

Shore Bancshares beats Rhinebeck Bancorp on 13 of the 14 factors compared between the two stocks.

About Rhinebeck Bancorp

Rhinebeck Bancorp, Inc. operates as the bank holding company for Rhinebeck Bank that provides banking and financial products and services to consumer and commercial customers in the Hudson Valley region of New York. The company offers deposits, including non-interest-bearing demand, interest bearing demand, money market, commercial and personal checking, individual retirement, and saving accounts, as well as certificates of deposit. It also provides direct and indirect automobile loans; non-residential commercial real estate loans; commercial business loans, such as term loans, revolving lines of credit, and lines of credit; residential mortgage and construction, one- to four-family residential real estate, multi-family real estate, commercial construction, and land development loans; and other consumer loans consist of home equity loans and lines of credit. In addition, the company offers retail brokerage and advisory services; life insurance services; and invests in mutual funds, annuities, and other assets. Rhinebeck Bancorp, Inc. was founded in 1860 and is headquartered in Poughkeepsie, New York. Rhinebeck Bancorp, Inc. is a subsidiary of Rhinebeck Bancorp, MHC.

About Shore Bancshares

Shore Bancshares, Inc. operates as a bank holding company for the Shore United Bank, N.A. that provides various commercial and consumer banking products and services to individuals, businesses, and other organizations. It offers checking, savings, overnight investment sweep, and money market accounts; and regular and IRA certificates of deposit, as well as CDARS programs and cash management services. The company also provides commercial loans, such as secured and unsecured loans, working capital loans, lines of credit, term loans, accounts receivable financing, real estate acquisition and development loans, construction loans, and letters of credit; residential real estate construction loans; residential mortgage loans; and loans to consumers, including home equity, automobile, installment, home improvement, and personal lines of credit, as well as other consumer financing products. In addition, it offers trust, asset management, and financial planning services; treasury management services, such as merchant card processing, remote deposit capture, and ACH origination, as well as telephone, mobile, and Internet banking services; safe deposit boxes; debit and credit cards; and automatic teller machine services. Shore Bancshares, Inc. was founded in 1876 and is headquartered in Easton, Maryland.