Profit ratio

Stock Review of Richmond Mutual Bancorporation (NASDAQ:RMBI) and Community West Bancshares (NASDAQ:CWBC)


Richmond Mutual Insurance Society (NASDAQ:RMBIGet a rating) and Community West Bancshares (NASDAQ: CWBCGet a rating) are both small cap finance companies, but which stock is better? We’ll compare the two companies based on valuation strength, profitability, institutional ownership, earnings, dividends, risk, and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and target prices for Richmond Mutual Bancorporation and Community West Bancshares, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Richmond Mutual Insurance Society 0 0 0 0 N / A
West Bancshares Community 0 1 0 0 2.00

Profitability

This table compares the net margins, return on equity and return on assets of Richmond Mutual Bancorporation and Community West Bancshares.

Net margins Return on equity return on assets
Richmond Mutual Insurance Society 23.28% 7.15% 0.98%
West Bancshares Community 27.71% 14.02% 1.25%

Dividends

Richmond Mutual Bancorporation pays an annual dividend of $0.40 per share and has a dividend yield of 3.0%. Community West Bancshares pays an annual dividend of $0.30 per share and has a dividend yield of 2.1%. Richmond Mutual Bancorporation pays 37.0% of its profits as a dividend. Community West Bancshares pays 18.8% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Richmond Mutual Bancorporation has increased its dividend for 2 consecutive years and Community West Bancshares has increased its dividend for 2 consecutive years.

Institutional and Insider Ownership

18.9% of the shares of Richmond Mutual Bancorporation are held by institutional investors. By comparison, 27.2% of Community West Bancshares shares are held by institutional investors. 5.9% of the shares of Richmond Mutual Bancorporation are held by insiders. By comparison, 22.2% of Community West Bancshares shares are held by insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company is poised for long-term growth.

Volatility and risk

Richmond Mutual Bancorporation has a beta of 0.84, suggesting its stock price is 16% less volatile than the S&P 500. By comparison, Community West Bancshares has a beta of 0.84, suggesting its stock price is 16% less volatile than the S&P 500.

Valuation and benefits

This chart compares the revenue, earnings per share (EPS), and valuation of Richmond Mutual Bancorporation and Community West Bancshares.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Richmond Mutual Insurance Society $51.34 million 3.12 $11.15 million $1.08 12:42 p.m.
West Bancshares Community $49.83 million 2.47 $13.10 million $1.60 8.88

Community West Bancshares has lower revenue, but higher revenue than Richmond Mutual Bancorporation. Community West Bancshares trades at a lower price-to-earnings ratio than Richmond Mutual Bancorporation, indicating that it is currently the more affordable of the two stocks.

Summary

Community West Bancshares beats Richmond Mutual Bancorporation on 8 of the 12 factors compared between the two stocks.

About Richmond Mutual Bancorporation

(Get a rating)

Richmond Mutual Bancorporation, Inc. operates as a holding company for First Bank Richmond which provides various banking services. The company accepts various deposits, including savings deposit accounts, NOW money market accounts and current accounts, and certificates of deposit. It 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, the company is engaged in finance leasing activities; and the provision of fee-based financial services including trust and estate administration, investment management, pension plan administration and private banking. It operates through 12 full-service and one limited-service banking offices with seven full-service and one limited-service offices located in Indiana; five offices located in Ohio; a full-service bank office and four other branches are located in Richmond, Indiana; two other offices in Cambridge City, Centerville, Richmond and Shelbyville, Indiana; two offices in Sidney and Ohio; two offices in Piqua and one office in Troy, Ohio; and a loan production office in Columbus, Ohio. Richmond Mutual Bancorporation, Inc. was founded in 1887 and is headquartered in Richmond, Indiana.

About Community West Bancshares

(Get a rating)

Community West Bancshares operates as a bank holding company for Community West Bank, NA, which provides various financial products and services in California. The Company offers deposit products, such as checking accounts, savings accounts, money market accounts, and certificates of deposit with fixed rates and fixed maturities; and cash management products. It also offers commercial real estate, commercial real estate, consumer, manufactured housing and small business administration loans, as well as agricultural loans for real estate and farm lines; home equity lines of credit secured by residential real estate; single-family real estate loans; and installment loans consisting of auto and general purpose loans. The company serves small and medium-sized businesses and their owners, professionals, high net worth individuals and non-profit organizations. It operates through a network of seven bank branches in Goleta, Santa Barbara, Santa Maria, Ventura, San Luis Obispo, Oxnard and Paso Robles. Community West Bancshares was founded in 1989 and is headquartered in Goleta, California.



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