Comparing MVB Financial (NASDAQ:MVBF) and Richmond Mutual Bancorporation (NASDAQ:RMBI)

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

Valuation and Earnings

This table compares MVB Financial and Richmond Mutual Bancorporation’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MVB Financial	$164.25 million	1.48	$15.05 million	$2.29	8.31
Richmond Mutual Bancorporation	$56.72 million	2.11	$12.97 million	$1.03	10.19

MVB Financial has higher revenue and earnings than Richmond Mutual Bancorporation. MVB Financial 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.

Profitability

This table compares MVB Financial and Richmond Mutual Bancorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MVB Financial	14.74%	7.81%	0.63%
Richmond Mutual Bancorporation	15.97%	8.14%	0.79%

Volatility & Risk

MVB Financial has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Richmond Mutual Bancorporation has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Dividends

MVB Financial pays an annual dividend of $0.68 per share and has a dividend yield of 3.6%. Richmond Mutual Bancorporation pays an annual dividend of $0.56 per share and has a dividend yield of 5.3%. MVB Financial pays out 29.7% of its earnings in the form of a dividend. Richmond Mutual Bancorporation pays out 54.4% 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. MVB Financial has raised its dividend for 6 consecutive years and Richmond Mutual Bancorporation has raised its dividend for 3 consecutive years.

Analyst Ratings

This is a summary of recent ratings for MVB Financial and Richmond Mutual Bancorporation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MVB Financial	0	0	3	0	3.00
Richmond Mutual Bancorporation	0	0	0	0	N/A

MVB Financial presently has a consensus price target of $28.25, indicating a potential upside of 48.53%. Given MVB Financial’s higher probable upside, analysts plainly believe MVB Financial is more favorable than Richmond Mutual Bancorporation.

Insider & Institutional Ownership

51.4% of MVB Financial shares are held by institutional investors. Comparatively, 15.1% of Richmond Mutual Bancorporation shares are held by institutional investors. 10.9% of MVB Financial shares are held by company insiders. Comparatively, 5.9% of Richmond Mutual Bancorporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

MVB Financial beats Richmond Mutual Bancorporation on 10 of the 16 factors compared between the two stocks.

About MVB Financial

MVB Financial Corp., through its subsidiaries, provides financial services to individuals and corporate clients. The company operates through five segments: CoRe Banking, Mortgage Banking, Professional Services, Edge Ventures, and The Financial Holding Company. It offers various demand deposit accounts, savings accounts, money market accounts, and certificates of deposit; and commercial, consumer, and real estate mortgage loans, as well as lines of credit. The company also provides debit cards; cashier's checks; safe deposit rental facilities; and non-deposit investment services, as well as financial technology (Fintech) banking services. In addition, it offers title insurance; and integrated regulatory compliance, state licensing, financial crimes prevention, and enterprise risk management services that include consulting, outsourcing, testing, and training solutions. Further, the company offers a customizable suite of fraud prevention services for merchants, credit agencies, Fintech companies, and other vendors; and consulting for the development of online and mobile banking platforms, and digital products for Fintech companies, as well as develops software. It operates full-service branches in West Virginia and Virginia. MVB Financial Corp. was founded in 1997 and is based in Fairmont, West Virginia.

About Richmond Mutual Bancorporation

Richmond Mutual Bancorporation, Inc. operates as a 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.