LCNB (NASDAQ:LCNB) & Richmond Mutual Bancorporation (NASDAQ:RMBI) Head to Head Contrast

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

Insider and Institutional Ownership

26.5% of Richmond Mutual Bancorporation shares are owned by institutional investors. Comparatively, 34.7% of LCNB shares are owned by institutional investors. 8.2% of Richmond Mutual Bancorporation shares are owned by company insiders. Comparatively, 5.7% of LCNB shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Richmond Mutual Bancorporation and LCNB”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Richmond Mutual Bancorporation	$90.97 million	1.56	$11.58 million	$1.17	11.55
LCNB	$124.52 million	1.86	$23.12 million	$1.63	9.98

LCNB has higher revenue and earnings than Richmond Mutual Bancorporation. LCNB 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 Richmond Mutual Bancorporation and LCNB’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Richmond Mutual Bancorporation	12.73%	8.43%	0.76%
LCNB	18.57%	8.68%	1.02%

Volatility & Risk

Richmond Mutual Bancorporation has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500. Comparatively, LCNB has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Richmond Mutual Bancorporation and LCNB, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Richmond Mutual Bancorporation	0	0	1	0	3.00
LCNB	0	0	1	0	3.00

Dividends

Richmond Mutual Bancorporation pays an annual dividend of $0.60 per share and has a dividend yield of 4.4%. LCNB pays an annual dividend of $0.88 per share and has a dividend yield of 5.4%. Richmond Mutual Bancorporation pays out 51.3% of its earnings in the form of a dividend. LCNB pays out 54.0% 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 increased its dividend for 1 consecutive years and LCNB has increased its dividend for 7 consecutive years. LCNB is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

LCNB beats Richmond Mutual Bancorporation on 11 of the 14 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 LCNB

LCNB Corp. operates as the financial holding company for LCNB National Bank that provides banking services in Ohio. Its deposit products include checking accounts, demand deposits, savings accounts, NOW and money market deposits, as well as individual retirement accounts and time certificates. The company's loan products comprise commercial and industrial, commercial and residential real estate, agricultural, construction, and small business administration loans; and residential mortgage loans that consists of loans for purchasing or refinancing personal residences, home equity lines of credit, and loans for commercial or consumer purposes secured by residential mortgages. It offers consumer loans, such as automobile, recreational vehicles, boat, home improvement, and personal loans. In addition, the company provides trust administration, estate settlement, and fiduciary services; and investment management services for trusts, agency accounts, individual retirement accounts, and foundations/endowments. Further, it offers investment services and products, including financial needs analysis, mutual funds, securities trading, annuities, and life insurance; and security brokerage services. Additionally, the company provides safe deposit boxes, night depositories, cashier's checks, bank-by-mail, ATMs, cash and transaction services, debit cards, wire transfers, electronic funds transfer, utility bill collections, notary public service, cash management services, telephone banking, PC Internet banking, mobile banking, and other services for individuals and businesses. LCNB Corp. was founded in 1877 and is headquartered in Lebanon, Ohio.