Comparison of Richmond Mutual Bancorporation (NASDAQ:RMBI) and Bankwell Financial Group (NASDAQ:BWFG)


Richmond Mutual Bancorporation (NASDAQ:RMBI – Get Rating) and Bankwell Financial Group (NASDAQ:BWFG – Get Rating) are both small cap finance companies, but which is the best investment? We’ll compare the two companies based on valuation strength, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Institutional and Insider Ownership

19.2% of the shares of Richmond Mutual Bancorporation are held by institutional investors. By comparison, 34.4% of Bankwell Financial Group shares are held by institutional investors. 4.2% of the shares of Richmond Mutual Bancorporation are held by insiders. By comparison, 26.5% of Bankwell Financial Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large fund managers, and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares the net margins, return on equity and return on assets of Richmond Mutual Bancorporation and Bankwell Financial Group.

Net margins Return on equity return on assets
Richmond Mutual Insurance Society 22.31% 6.42% 0.94%
Bankwell Financial Group 32.50% 14.83% 1.26%

Volatility and risk

Richmond Mutual Bancorporation has a beta of 0.86, meaning its stock price is 14% less volatile than the S&P 500. In comparison, Bankwell Financial Group has a beta of 0.76, meaning its stock price is 24% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Richmond Mutual Bancorporation and Bankwell Financial Group, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Richmond Mutual Insurance Society 0 0 0 0 N / A
Bankwell Financial Group 0 0 2 0 3.00

Bankwell Financial Group has a consensus price target of $34.00, indicating a potential upside of 0.00%. Given Bankwell Financial Group’s likely higher upside, analysts clearly believe that Bankwell Financial Group is more favorable than Richmond Mutual Bancorporation.

Dividends

Richmond Mutual Bancorporation pays an annual dividend of $0.40 per share and has a dividend yield of 2.4%. Bankwell Financial Group pays an annual dividend of $0.80 per share and has a dividend yield of 2.4%. Richmond Mutual Bancorporation pays 39.6% of its profits as a dividend. Bankwell Financial Group pays 21.7% 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 1 consecutive year and Bankwell Financial Group has increased its dividend for 5 consecutive years.

Valuation and benefits

This table compares the revenue, earnings per share (EPS) and valuation of Richmond Mutual Bancorporation and Bankwell Financial Group.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Richmond Mutual Insurance Society $51.34 million 3.93 $11.15 million $1.01 16.22
Bankwell Financial Group $87.03 million 3.03 $26.59 million $3.69 9.21

Bankwell Financial Group has higher revenue and profit than Richmond Mutual Bancorporation. Bankwell Financial Group 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

Bankwell Financial Group beats Richmond Mutual Bancorporation on 12 out of 16 factors compared between the two stocks.

Company Profile 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 leasing financing 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.

Bankwell Financial Group Company Profile (Get a rating)

Bankwell Financial Group, Inc. operates as a banking holding company for Bankwell Bank which provides various retail and corporate banking services. It offers various traditional deposit products, including checks, savings, money market and certificates of deposit. The company also offers first mortgage loans secured by residential properties occupied by one to four families for personal use; home equity loans and home equity lines of credit secured by owner-occupied single family residential properties of one to four families; loans secured by investor-owned commercial real estate, multi-family dwellings and single-family dwellings; commercial construction loans for commercial development projects, including apartment buildings and condominiums, as well as office buildings, retail and other income-generating properties; land loans; commercial enterprise loans secured by assignments of corporate assets and personal guarantees from business owners; loans secured by savings or certificate accounts and automobiles; and unsecured personal loans and overdraft lines of credit. It operates branches in New Canaan, Stamford, Fairfield, Wilton, Westport, Darien, Norwalk and Hamden, Connecticut. The company was formerly known as BNC Financial Group, Inc. and changed its name to Bankwell Financial Group, Inc. in September 2013. Bankwell Financial Group, Inc. was founded in 2002 and is headquartered in New Canaan , Connecticut.



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