Comparing Harleysville Savings Financial (OTCMKTS:HARL) & Rhinebeck Bancorp (NASDAQ:RBKB)

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

Earnings and Valuation

This table compares Harleysville Savings Financial and Rhinebeck Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Harleysville Savings Financial	$43.61 million	2.31	$9.53 million	$3.27	8.64
Rhinebeck Bancorp	$53.22 million	3.43	$10.05 million	$0.91	17.95

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Harleysville Savings Financial and Rhinebeck Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Harleysville Savings Financial	0	0	0	0	0.00
Rhinebeck Bancorp	0	0	1	0	3.00

Insider & Institutional Ownership

1.2% of Harleysville Savings Financial shares are held by institutional investors. Comparatively, 23.9% of Rhinebeck Bancorp shares are held by institutional investors. 14.5% of Harleysville Savings Financial shares are held by company insiders. Comparatively, 3.0% of Rhinebeck Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Harleysville Savings Financial and Rhinebeck Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Harleysville Savings Financial	24.73%	13.22%	1.30%
Rhinebeck Bancorp	13.20%	7.42%	0.77%

Risk and Volatility

Harleysville Savings Financial has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500. Comparatively, Rhinebeck Bancorp has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500.

Summary

Rhinebeck Bancorp beats Harleysville Savings Financial on 7 of the 13 factors compared between the two stocks.

About Harleysville Savings Financial

Harleysville Financial Corporation operates as the bank holding company for Harleysville Bank that provides various banking products and services in Pennsylvania. The company offers various deposit products, including savings, money market, and checking accounts, as well as certificates of deposits. It also provides consumer loans, including residential mortgages, savings account loans, and home equity line of credit, construction, and non-real estate consumer loans; and commercial loans, such as commercial mortgages, line of credit, and commercial business loans. In addition, the company offers online banking and bill payment, mobile and telephone banking, remote deposit, debit cards, automated clearing house processing, sweep accounts, zero balance accounts, employee services, and other cash management services. Further, it provides investment services, such as financial consultation, cash and wealth management, education planning, investment strategy, insurance, retirement and estate planning, financial and goal planning, and asset allocation services, as well as offers investment products, such as fixed and variable annuities, mutual funds, life insurances, stocks and bonds, tax-advantaged investments, long-term care insurances, disability insurances, retirement plans/individual retirement accounts, wrap accounts, and unit investment trusts. Its primary market area includes Montgomery County and Bucks County. The company was formerly known as Harleysville Savings Financial Corporation and changed its name to Harleysville Financial Corporation in May 2017. Harleysville Financial Corporation was founded in 1915 and is headquartered in Harleysville, Pennsylvania.

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.