International Bancshares (NASDAQ:IBOC) vs. Red River Bancshares (NASDAQ:RRBI) Head-To-Head Comparison

International Bancshares (NASDAQ:IBOC) and Red River Bancshares (NASDAQ:RRBI) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for International Bancshares and Red River Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Bancshares	0	0	0	0	0.00
Red River Bancshares	0	0	1	0	3.00

Red River Bancshares has a consensus target price of $67.00, suggesting a potential upside of 6.59%. Given Red River Bancshares’ stronger consensus rating and higher possible upside, analysts plainly believe Red River Bancshares is more favorable than International Bancshares.

Profitability

This table compares International Bancshares and Red River Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Bancshares	39.51%	14.37%	2.56%
Red River Bancshares	23.62%	11.76%	1.23%

Insider & Institutional Ownership

65.9% of International Bancshares shares are owned by institutional investors. Comparatively, 27.6% of Red River Bancshares shares are owned by institutional investors. 13.4% of International Bancshares shares are owned by insiders. Comparatively, 15.9% of Red River Bancshares shares are owned by 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.

Dividends

International Bancshares pays an annual dividend of $1.40 per share and has a dividend yield of 2.0%. Red River Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 0.8%. International Bancshares pays out 21.1% of its earnings in the form of a dividend. Red River Bancshares pays out 8.5% 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. International Bancshares has raised its dividend for 16 consecutive years and Red River Bancshares has raised its dividend for 3 consecutive years. International Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares International Bancshares and Red River Bancshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Bancshares	$1.04 billion	4.08	$409.17 million	$6.62	10.34
Red River Bancshares	$157.67 million	2.66	$34.24 million	$5.67	11.09

International Bancshares has higher revenue and earnings than Red River Bancshares. International Bancshares 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.

Risk & Volatility

International Bancshares has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Red River Bancshares has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Summary

International Bancshares beats Red River Bancshares on 11 of the 17 factors compared between the two stocks.

About International Bancshares

International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. The company was founded in 1966 and is headquartered in Laredo, Texas.

About Red River Bancshares

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.