Head to Head Analysis: Camden National (NASDAQ:CAC) vs. Richmond Mutual Bancorporation (NASDAQ:RMBI)

Richmond Mutual Bancorporation (NASDAQ:RMBI) and Camden National (NASDAQ:CAC) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Valuation and Earnings

This table compares Richmond Mutual Bancorporation and Camden National”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Richmond Mutual Bancorporation	$90.97 million	1.62	$11.58 million	$1.17	12.03
Camden National	$373.18 million	2.21	$65.16 million	$3.84	12.69

Camden National has higher revenue and earnings than Richmond Mutual Bancorporation. Richmond Mutual Bancorporation is trading at a lower price-to-earnings ratio than Camden National, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Richmond Mutual Bancorporation has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500. Comparatively, Camden National has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Richmond Mutual Bancorporation and Camden National, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Richmond Mutual Bancorporation	0	0	1	0	3.00
Camden National	0	5	0	0	2.00

Camden National has a consensus price target of $49.00, suggesting a potential upside of 0.55%. Given Camden National’s higher probable upside, analysts clearly believe Camden National is more favorable than Richmond Mutual Bancorporation.

Insider and Institutional Ownership

26.5% of Richmond Mutual Bancorporation shares are owned by institutional investors. Comparatively, 77.4% of Camden National shares are owned by institutional investors. 8.2% of Richmond Mutual Bancorporation shares are owned by insiders. Comparatively, 1.7% of Camden National shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Richmond Mutual Bancorporation	12.73%	8.61%	0.76%
Camden National	17.46%	11.39%	1.07%

Dividends

Richmond Mutual Bancorporation pays an annual dividend of $0.60 per share and has a dividend yield of 4.3%. Camden National pays an annual dividend of $1.68 per share and has a dividend yield of 3.4%. Richmond Mutual Bancorporation pays out 51.3% of its earnings in the form of a dividend. Camden National pays out 43.8% 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. Richmond Mutual Bancorporation has raised its dividend for 1 consecutive years. Richmond Mutual Bancorporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Camden National beats Richmond Mutual Bancorporation on 12 of the 17 factors compared between the two stocks.

About Richmond Mutual Bancorporation

Richmond Mutual Bancorporation, Inc. operates as the bank 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.

About Camden National

Camden National Corporation operates as the bank holding company for Camden National Bank that provides various commercial and consumer banking products and services for consumer, institutional, municipal, non-profit, and commercial customers in Maine, New Hampshire, and Massachusetts. The company accepts checking, savings, time, and brokered deposits, as well as deposits with the certificate of deposit account registry system. Its loan products include non-owner-occupied commercial estate loans, owner-occupied commercial real estate loans, unsecured fully-guaranteed commercial loans backed by the small business administration, loans secured by one-to four-family properties, and consumer and home equity loans. The company also provides brokerage and insurance services through its financial offerings consisting of college, retirement, estate planning, mutual funds, strategic asset management accounts, and variable and fixed annuities. Further, it offers a range of fiduciary and asset management, wealth management, investment management, financial planning, and trustee services. Camden National Corporation was founded in 1875 and is headquartered in Camden, Maine.