Comparing Richmond Mutual Bancorporation (NASDAQ:RMBI) & German American Bancorp (NASDAQ:GABC)

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

Risk & Volatility

Richmond Mutual Bancorporation has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, German American Bancorp has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Richmond Mutual Bancorporation	10.62%	6.57%	0.60%
German American Bancorp	23.75%	11.94%	1.33%

Institutional & Insider Ownership

26.5% of Richmond Mutual Bancorporation shares are owned by institutional investors. Comparatively, 46.9% of German American Bancorp shares are owned by institutional investors. 8.2% of Richmond Mutual Bancorporation shares are owned by company insiders. Comparatively, 4.6% of German American Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Richmond Mutual Bancorporation pays an annual dividend of $0.56 per share and has a dividend yield of 4.2%. German American Bancorp pays an annual dividend of $1.08 per share and has a dividend yield of 2.8%. Richmond Mutual Bancorporation pays out 65.1% of its earnings in the form of a dividend. German American Bancorp pays out 39.0% 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. German American Bancorp has increased its dividend for 12 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Richmond Mutual Bancorporation and German American Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Richmond Mutual Bancorporation	0	0	0	0	0.00
German American Bancorp	0	2	3	0	2.60

German American Bancorp has a consensus target price of $45.40, indicating a potential upside of 16.86%. Given German American Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe German American Bancorp is more favorable than Richmond Mutual Bancorporation.

Valuation & Earnings

This table compares Richmond Mutual Bancorporation and German American Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Richmond Mutual Bancorporation	$42.68 million	3.42	$9.49 million	$0.86	15.55
German American Bancorp	$316.92 million	3.64	$85.89 million	$2.77	14.03

German American Bancorp has higher revenue and earnings than Richmond Mutual Bancorporation. German American Bancorp 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.

Summary

German American 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 German American Bancorp

German American Bancorp, Inc. operates as a financial holding company for German American Bank that provides retail and commercial banking services. The company operates through three segments: Core Banking, Wealth Management Services, and Insurance Operations. The Core Banking segment accepts deposits from the general public; and originates consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans, as well as sells residential mortgage loans in the secondary market. The Wealth Management segment provides trust, investment advisory, brokerage, and retirement planning services. The Insurance Operations segment offers a range of personal and corporate property and casualty insurance products. It also offers checking, saving, and individual retirement accounts; certificates of deposit; wire transfer; credit cards; home equity, mortgages, and small business; treasury management; and online and mobile banking, bill pay, digital wallet, mobile check deposit, credit score and report, money management, and estatements, as well as wealth advisory. German American Bancorp, Inc. was founded in 1910 and is based in Jasper, Indiana.