Financial Analysis: Ohio Valley Banc (NASDAQ:OVBC) & Richmond Mutual Bancorporation (NASDAQ:RMBI)

Institutional & Insider Ownership

26.5% of Richmond Mutual Bancorporation shares are held by institutional investors. Comparatively, 22.1% of Ohio Valley Banc shares are held by institutional investors. 8.2% of Richmond Mutual Bancorporation shares are held by company insiders. Comparatively, 5.3% of Ohio Valley Banc shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Richmond Mutual Bancorporation pays an annual dividend of $0.56 per share and has a dividend yield of 4.1%. Ohio Valley Banc pays an annual dividend of $0.88 per share and has a dividend yield of 3.5%. Richmond Mutual Bancorporation pays out 65.1% of its earnings in the form of a dividend. Ohio Valley Banc pays out 35.6% 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.

Earnings & Valuation

This table compares Richmond Mutual Bancorporation and Ohio Valley Banc”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Richmond Mutual Bancorporation	$42.68 million	3.46	$9.49 million	$0.86	15.72
Ohio Valley Banc	$59.88 million	1.99	$12.63 million	$2.47	10.26

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

	Net Margins	Return on Equity	Return on Assets
Richmond Mutual Bancorporation	10.62%	6.57%	0.60%
Ohio Valley Banc	13.66%	7.97%	0.83%

Volatility and Risk

Richmond Mutual Bancorporation has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Ohio Valley Banc has a beta of 0.06, indicating that its share price is 94% less volatile than the S&P 500.

Summary

Ohio Valley Banc beats Richmond Mutual Bancorporation on 7 of the 13 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 Ohio Valley Banc

Ohio Valley Banc Corp. operates as the bank holding company for The Ohio Valley Bank Company that provides commercial and consumer banking products and services. The company operates in two segments, Banking and Consumer Finance. It accepts various deposit products, including checking, savings, time, and money market accounts, as well as individual retirement accounts, demand deposits, NOW accounts, and certificates of deposit. The company also provides various residential real estate loans, including one-to four-family residential mortgages; commercial loans for securing equipment, inventory, stock, commercial real estate, and rental property; and consumer loans secured by automobiles, mobile homes, recreational vehicles, and other personal property, as well as personal loans, unsecured credit card receivables, floor plan and student loans, and construction loans. In addition, it offers safe deposit box, wire transfer, credit card, home equity loans, and Internet banking services; and financial management online services, such as cash management and news updates related to repossession auctions, current rates, and general bank news. Further, the company provides automatic teller machines (ATMs), consumer finance, seasonal tax preparation, commercial property, and various liability insurance services, as well as trust and online-only consumer direct mortgage services. The company owns and operates ATMs, including off-site ATMs. It operates offices in Ohio and West Virginia. The company was founded in 1872 and is based in Gallipolis, Ohio.