Comparing Rhinebeck Bancorp (NASDAQ:RBKB) and Flagstar Financial (NYSE:FLG)

Rhinebeck Bancorp (NASDAQ:RBKB) and Flagstar Financial (NYSE:FLG) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Profitability

This table compares Rhinebeck Bancorp and Flagstar Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rhinebeck Bancorp	-15.89%	3.44%	0.32%
Flagstar Financial	-17.16%	-10.72%	-0.76%

Risk & Volatility

Rhinebeck Bancorp has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, Flagstar Financial has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.

Insider & Institutional Ownership

23.9% of Rhinebeck Bancorp shares are held by institutional investors. Comparatively, 67.9% of Flagstar Financial shares are held by institutional investors. 6.4% of Rhinebeck Bancorp shares are held by company insiders. Comparatively, 6.4% of Flagstar Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Rhinebeck Bancorp and Flagstar Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rhinebeck Bancorp	$28.73 million	3.72	-$8.62 million	($0.81)	-11.90
Flagstar Financial	$2.58 billion	1.67	-$1.09 billion	($3.69)	-2.83

Rhinebeck Bancorp has higher earnings, but lower revenue than Flagstar Financial. Rhinebeck Bancorp is trading at a lower price-to-earnings ratio than Flagstar Financial, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Rhinebeck Bancorp and Flagstar Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rhinebeck Bancorp	0	0	0	0	0.00
Flagstar Financial	0	3	3	0	2.50

Flagstar Financial has a consensus price target of $13.25, suggesting a potential upside of 27.04%. Given Flagstar Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Flagstar Financial is more favorable than Rhinebeck Bancorp.

Summary

Flagstar Financial beats Rhinebeck Bancorp on 8 of the 14 factors compared between the two stocks.

About Rhinebeck Bancorp

Rhinebeck Bancorp, Inc. operates as the bank holding company for Rhinebeck Bank that provides banking and financial products and services to consumer and commercial customers in the Hudson Valley region of New York. The company offers deposits, including non-interest-bearing demand, interest bearing demand, money market, commercial and personal checking, individual retirement, and saving accounts, as well as certificates of deposit. It also provides direct and indirect automobile loans; non-residential commercial real estate loans; commercial business loans, such as term loans, revolving lines of credit, and lines of credit; residential mortgage and construction, one- to four-family residential real estate, multi-family real estate, commercial construction, and land development loans; and other consumer loans consist of home equity loans and lines of credit. In addition, the company offers retail brokerage and advisory services; life insurance services; and invests in mutual funds, annuities, and other assets. Rhinebeck Bancorp, Inc. was founded in 1860 and is headquartered in Poughkeepsie, New York. Rhinebeck Bancorp, Inc. is a subsidiary of Rhinebeck Bancorp, MHC.

About Flagstar Financial

Flagstar Financial, Inc. operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company’s deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit. Its loan products comprise multi-family loans; commercial real estate loans; acquisition, development, and construction loans; commercial and industrial loans; one-to-four family loans; specialty finance loans and leases; warehouse loans; and other loans, such as home equity lines of credit, boat and recreational vehicle indirect lending, point of sale consumer loans, and other consumer loans, including overdraft loans. The company offers cash management products; non-deposit investment and insurance products; and online banking, mobile banking, and bank-by-phone services. It primarily serves individuals, small and mid-size businesses, and professional associations. The company was formerly known as New York Community Bancorp, Inc. and changed its name to Flagstar Financial, Inc. in October 2024. Flagstar Financial, Inc. was founded in 1859 and is headquartered in Hicksville, New York.