Critical Contrast: Shore Bancshares (NASDAQ:SHBI) versus Rhinebeck Bancorp (NASDAQ:RBKB)

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

Risk & Volatility

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

Profitability

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

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shore Bancshares	$342.72 million	1.93	$59.51 million	$1.78	11.10
Rhinebeck Bancorp	$75.84 million	1.75	$10.05 million	$0.92	12.93

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.

Analyst Ratings

This is a summary of current ratings and recommmendations for Shore Bancshares and Rhinebeck Bancorp, as reported by MarketBeat.

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

Shore Bancshares presently has a consensus price target of $20.17, suggesting a potential upside of 2.11%. Given Shore Bancshares’ stronger consensus rating and higher possible upside, equities analysts plainly believe Shore Bancshares is more favorable than Rhinebeck Bancorp.

Institutional and Insider Ownership

59.8% of Shore Bancshares shares are owned by institutional investors. Comparatively, 23.9% of Rhinebeck Bancorp shares are owned by institutional investors. 8.6% of Shore Bancshares shares are owned by company insiders. Comparatively, 6.4% of Rhinebeck Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

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

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.

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.