Analyzing Richmond Mutual Bancorporation (NASDAQ:RMBI) and JSB Financial (OTCMKTS:JFWV)

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

Institutional and Insider Ownership

26.5% of Richmond Mutual Bancorporation shares are owned by institutional investors. Comparatively, 0.1% of JSB Financial shares are owned by institutional investors. 8.2% of Richmond Mutual Bancorporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Richmond Mutual Bancorporation and JSB Financial’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%
JSB Financial	N/A	N/A	N/A

Dividends

Richmond Mutual Bancorporation pays an annual dividend of $0.60 per share and has a dividend yield of 4.5%. JSB Financial pays an annual dividend of $2.90 per share and has a dividend yield of 2.4%. Richmond Mutual Bancorporation pays out 51.3% of its earnings in the form of a dividend. JSB Financial pays out 17.9% 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 1 consecutive years. Richmond Mutual Bancorporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Richmond Mutual Bancorporation and JSB Financial”s top-line 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	1.55	$11.58 million	$1.17	11.45
JSB Financial	N/A	N/A	$4.20 million	$16.17	7.54

Richmond Mutual Bancorporation has higher revenue and earnings than JSB Financial. JSB Financial 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.

Risk & Volatility

Richmond Mutual Bancorporation has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500. Comparatively, JSB Financial has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Richmond Mutual Bancorporation and JSB Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Richmond Mutual Bancorporation	0	0	1	0	3.00
JSB Financial	0	0	0	0	0.00

Summary

Richmond Mutual Bancorporation beats JSB Financial on 13 of the 15 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 JSB Financial

JSB Financial Inc. operates as the bank holding company for Jefferson Security Bank that provides various banking products and services to individuals, agricultural businesses, small and medium-sized businesses, local government entities, and non-profit organizations. It accepts various deposit products, such as checking, savings, money market, individual retirement, overdraft protection, and sweep accounts, as well as certificates of deposit. The company's loan portfolio includes personal and vehicle, mortgage, construction, commercial, and home equity loans. It also offers ATM, online and mobile banking, bill pay, paperless statements, cash management, remote deposit capture, merchant, and credit and debit card services. The company was founded in 1869 and is headquartered in Shepherdstown, West Virginia.