Comparing German American Bancorp (NASDAQ:GABC) & Richmond Mutual Bancorporation (NASDAQ:RMBI)

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

Analyst Ratings

This is a breakdown of current recommendations for German American Bancorp and Richmond Mutual Bancorporation, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
German American Bancorp	0	2	3	0	2.60
Richmond Mutual Bancorporation	0	0	0	0	0.00

German American Bancorp presently has a consensus price target of $45.40, suggesting a potential upside of 16.86%. Given German American Bancorp’s stronger consensus rating and higher possible upside, research analysts plainly believe German American Bancorp is more favorable than Richmond Mutual Bancorporation.

Valuation and Earnings

This table compares German American Bancorp and Richmond Mutual Bancorporation”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
German American Bancorp	$316.92 million	3.64	$85.89 million	$2.77	14.03
Richmond Mutual Bancorporation	$42.68 million	3.42	$9.49 million	$0.86	15.55

German American Bancorp has higher revenue and earnings than Richmond Mutual Bancorporation. German American Bancorp 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.

Institutional and Insider Ownership

46.9% of German American Bancorp shares are owned by institutional investors. Comparatively, 26.5% of Richmond Mutual Bancorporation shares are owned by institutional investors. 4.6% of German American Bancorp shares are owned by company insiders. Comparatively, 8.2% of Richmond Mutual Bancorporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

German American Bancorp pays an annual dividend of $1.08 per share and has a dividend yield of 2.8%. Richmond Mutual Bancorporation pays an annual dividend of $0.56 per share and has a dividend yield of 4.2%. German American Bancorp pays out 39.0% of its earnings in the form of a dividend. Richmond Mutual Bancorporation pays out 65.1% 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. German American Bancorp has increased its dividend for 12 consecutive years.

Profitability

This table compares German American Bancorp and Richmond Mutual Bancorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
German American Bancorp	23.75%	11.94%	1.33%
Richmond Mutual Bancorporation	10.62%	6.57%	0.60%

Risk and Volatility

German American Bancorp has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Richmond Mutual Bancorporation has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Summary

German American Bancorp beats Richmond Mutual Bancorporation on 14 of the 17 factors compared between the two stocks.

About German American Bancorp

German American Bancorp, Inc. operates as a financial holding company for German American Bank that provides retail and commercial banking services. The company operates through three segments: Core Banking, Wealth Management Services, and Insurance Operations. The Core Banking segment accepts deposits from the general public; and originates consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans, as well as sells residential mortgage loans in the secondary market. The Wealth Management segment provides trust, investment advisory, brokerage, and retirement planning services. The Insurance Operations segment offers a range of personal and corporate property and casualty insurance products. It also offers checking, saving, and individual retirement accounts; certificates of deposit; wire transfer; credit cards; home equity, mortgages, and small business; treasury management; and online and mobile banking, bill pay, digital wallet, mobile check deposit, credit score and report, money management, and estatements, as well as wealth advisory. German American Bancorp, Inc. was founded in 1910 and is based in Jasper, Indiana.

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.