Red River Bancshares (NASDAQ:RRBI) versus Washington Trust Bancorp (NASDAQ:WASH) Head-To-Head Comparison

Red River Bancshares (NASDAQ:RRBIGet Free Report) and Washington Trust Bancorp (NASDAQ:WASHGet Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Profitability

This table compares Red River Bancshares and Washington Trust Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Red River Bancshares 22.87% 11.46% 1.09%
Washington Trust Bancorp 12.01% 10.11% 0.65%

Valuation & Earnings

This table compares Red River Bancshares and Washington Trust Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Red River Bancshares $149.60 million 2.13 $34.88 million $4.69 9.85
Washington Trust Bancorp $364.80 million 1.23 $48.18 million $2.71 9.68

Washington Trust Bancorp has higher revenue and earnings than Red River Bancshares. Washington Trust Bancorp is trading at a lower price-to-earnings ratio than Red River Bancshares, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

27.6% of Red River Bancshares shares are held by institutional investors. Comparatively, 65.8% of Washington Trust Bancorp shares are held by institutional investors. 16.5% of Red River Bancshares shares are held by insiders. Comparatively, 1.7% of Washington Trust Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Red River Bancshares and Washington Trust Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Red River Bancshares 0 0 1 0 3.00
Washington Trust Bancorp 1 1 0 0 1.50

Red River Bancshares currently has a consensus price target of $55.00, suggesting a potential upside of 19.05%. Given Red River Bancshares’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Red River Bancshares is more favorable than Washington Trust Bancorp.

Dividends

Red River Bancshares pays an annual dividend of $0.36 per share and has a dividend yield of 0.8%. Washington Trust Bancorp pays an annual dividend of $2.24 per share and has a dividend yield of 8.5%. Red River Bancshares pays out 7.7% of its earnings in the form of a dividend. Washington Trust Bancorp pays out 82.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Red River Bancshares has increased its dividend for 2 consecutive years and Washington Trust Bancorp has increased its dividend for 13 consecutive years. Washington Trust Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Red River Bancshares has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Washington Trust Bancorp has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.

Summary

Red River Bancshares beats Washington Trust Bancorp on 11 of the 17 factors compared between the two stocks.

About Red River Bancshares

(Get Free Report)

Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit. In addition, the company provides treasury management, private banking, and brokerage; investment advisory, financial planning, and a suite of retirement plans; debit and credit cards, direct deposits, cashier's checks, and wire transfer services; online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and banking services in person, through ATMs, drive-through facilities, night deposits, telephone, mail, mobile banking, and remote deposits. Red River Bancshares, Inc. was incorporated in 1998 and is headquartered in Alexandria, Louisiana.

About Washington Trust Bancorp

(Get Free Report)

Washington Trust Bancorp, Inc. operates as the bank holding company for The Washington Trust Company, of Westerly that provides various banking and financial services to individuals and businesses. The company operates in two segments, Commercial Banking and Wealth Management Services. The Commercial Banking segment offers deposit accounts, including interest-bearing and noninterest-bearing demand deposits, NOW and savings accounts, money market and retirement deposit accounts, and time deposits; various commercial and retail lending products, such as commercial real estate loans, including commercial mortgages, and construction and development loans; commercial and industrial loans comprising working capital, equipment financing, and financing for other business-related purposes; residential real estate loans that consist of mortgage and homeowner construction loans; and consumer loans comprising home equity loans and lines of credit, personal installment loans, and loans to individuals secured by general aviation aircraft. This segment also provides debit cards; automated teller machines (ATMs); telephone banking, internet banking, mobile banking, remote deposit capture, and other cash management services; and investment portfolio and wholesale funding services. The Wealth Management Services segment offers investment management; financial planning; personal trust and estate services, such as trustee, personal representative, custodian, and guardian; and settlement of decedents' estates, as well as institutional trust services comprising custody and fiduciary services for personal and institutional clients. Washington Trust Bancorp, Inc. was founded in 1800 and is headquartered in Westerly, Rhode Island.

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