Head-To-Head Survey: Prime Meridian (OTCMKTS:PMHG) vs. Richmond Mutual Bancorporation (NASDAQ:RMBI)

Prime Meridian (OTCMKTS:PMHG – Get Rating) and Richmond Mutual Bancorporation (NASDAQ:RMBI – Get Rating) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.

Volatility & Risk

Prime Meridian has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Richmond Mutual Bancorporation has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Prime Meridian	29.63%	14.82%	1.15%
Richmond Mutual Bancorporation	21.43%	9.71%	0.99%

Institutional & Insider Ownership

13.8% of Prime Meridian shares are owned by institutional investors. Comparatively, 17.5% of Richmond Mutual Bancorporation shares are owned by institutional investors. 25.9% of Prime Meridian shares are owned by company insiders. Comparatively, 5.9% 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 company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for Prime Meridian and Richmond Mutual Bancorporation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prime Meridian	0	0	0	0	N/A
Richmond Mutual Bancorporation	0	0	0	0	N/A

Valuation and Earnings

This table compares Prime Meridian and Richmond Mutual Bancorporation’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prime Meridian	$32.67 million	2.15	$9.68 million	$2.77	7.94
Richmond Mutual Bancorporation	$46.37 million	2.44	$12.97 million	$1.18	8.22

Richmond Mutual Bancorporation has higher revenue and earnings than Prime Meridian. Prime Meridian 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.

Dividends

Prime Meridian pays an annual dividend of $0.22 per share and has a dividend yield of 1.0%. Richmond Mutual Bancorporation pays an annual dividend of $0.56 per share and has a dividend yield of 5.8%. Prime Meridian pays out 7.9% of its earnings in the form of a dividend. Richmond Mutual Bancorporation pays out 47.5% 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. Richmond Mutual Bancorporation has raised its dividend for 3 consecutive years. Richmond Mutual Bancorporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

About Prime Meridian

(Get Rating)

Prime Meridian Holding Company operates as the bank holding company for Prime Meridian Bank that provides various consumer and commercial banking services to individuals and businesses. The company accepts various deposits, such as checking, money market, savings, term certificate of deposit, demand interest bearing and non-interest bearing, health savings, NOW, and escrow accounts, as well as retirement savings plans and time deposits. Its loan products include commercial real estate, residential real estate and home equity, small business administration, construction, equipment, and commercial loans; and consumer and other loans comprising financing of automobiles, boats, and recreational vehicles, as well as issues standby letters and business lines of credit. The company also offers debit and credit cards; mobile banking, remote and mobile deposit, Apple Pay, bank-to-bank transfer, and online banking services; and safe deposit, wire transfer, foreign exchange, direct deposits, notary, night depository, official checks, domestic collections, bank drafts, automated teller services, drive-in tellers, merchant card, and banking by mail services, as well as invests in securities. It operates through four banking offices in Tallahassee, Crawfordville, and Lakeland, Florida. The company was founded in 2008 and is headquartered in Tallahassee, Florida.

About Richmond Mutual Bancorporation

(Get Rating)

Richmond Mutual Bancorporation, Inc. operates as the holding company of First Bank Richmond. It aims to own all of the outstanding shares of capital stock of First Bank Richmond The bank company was founded in 1887 and the bank holding was formed in February 2019 and is headquartered in Richmond, IN.