Comparing John Marshall Bancorp (NASDAQ:JMSB) & Republic Bancorp (NASDAQ:RBCAA)

John Marshall Bancorp (NASDAQ:JMSB) and Republic Bancorp (NASDAQ:RBCAA) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Dividends

John Marshall Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 1.6%. Republic Bancorp pays an annual dividend of $1.98 per share and has a dividend yield of 2.2%. John Marshall Bancorp pays out 22.6% of its earnings in the form of a dividend. Republic Bancorp pays out 30.6% 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. Republic Bancorp has increased its dividend for 27 consecutive years. Republic Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares John Marshall Bancorp and Republic Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
John Marshall Bancorp	$115.33 million	2.68	$21.23 million	$1.59	13.75
Republic Bancorp	$395.93 million	4.47	$131.32 million	$6.48	13.94

Republic Bancorp has higher revenue and earnings than John Marshall Bancorp. John Marshall Bancorp is trading at a lower price-to-earnings ratio than Republic Bancorp, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

John Marshall Bancorp has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Republic Bancorp has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Insider and Institutional Ownership

39.1% of John Marshall Bancorp shares are owned by institutional investors. Comparatively, 24.4% of Republic Bancorp shares are owned by institutional investors. 12.6% of John Marshall Bancorp shares are owned by company insiders. Comparatively, 55.9% of Republic Bancorp shares are owned by company 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for John Marshall Bancorp and Republic Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
John Marshall Bancorp	0	1	2	1	3.00
Republic Bancorp	0	0	1	0	3.00

John Marshall Bancorp currently has a consensus target price of $24.00, indicating a potential upside of 9.74%. Given John Marshall Bancorp’s higher probable upside, analysts clearly believe John Marshall Bancorp is more favorable than Republic Bancorp.

Profitability

This table compares John Marshall Bancorp and Republic Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
John Marshall Bancorp	19.27%	8.60%	0.97%
Republic Bancorp	25.22%	11.32%	1.75%

Summary

Republic Bancorp beats John Marshall Bancorp on 11 of the 17 factors compared between the two stocks.

About John Marshall Bancorp

John Marshall Bancorp, Inc. is the bank holding company for John Marshall Bank. The Bank is headquartered in Reston, Virginia with eight full-service branches located in Alexandria, Arlington, Loudoun, Prince William, Reston, and Tysons, Virginia, as well as Rockville, Maryland, and Washington, D.C. The Bank is dedicated to providing exceptional value, personalized service and convenience to local businesses and professionals in the Washington, D.C. Metropolitan area. The Bank offers a comprehensive line of sophisticated banking products and services that rival those of the largest banks along with experienced staff to help achieve customers’ financial goals. Dedicated relationship managers serve as direct points-of-contact, providing subject matter expertise in a variety of niche industries including charter and private schools, government contractors, health services, nonprofits and associations, professional services, property management companies and title companies

About Republic Bancorp

Republic Bancorp, Inc. operates as a bank holding company for Republic Bank & Trust Company that provides various banking products and services in the United States. It operates in six segments: Traditional Banking, Warehouse, Mortgage Banking, Tax Refund Solutions, Republic Payment Solutions, and Republic Credit Solutions. The company offers demand, money market accounts, savings, individual retirement accounts, time, brokered, and other certificates of deposit; and retail and commercial mortgage, construction and land development, consumer, aircraft, and marine loans. It also provides credit cards; title insurance and other financial products and services; and private banking, lockbox processing, remote deposit capture, business online banking, account reconciliation, automated clearing house processing, and internet and mobile banking services. In addition, it offers short-term and revolving credit facilities to mortgage bankers through mortgage warehouse lines of credit; mortgage banking; tax refund solutions, which facilitate the receipt and payment of federal and state tax refund products through third-party tax preparers and tax-preparation software providers; payments-related products and services to consumers through third party service providers; and consumer credit products. The company offers its services through full-services banking centers in Kentucky, Indiana, Florida, Ohio, and Tennessee. Republic Bancorp, Inc. was incorporated in 1974 and is headquartered in Louisville, Kentucky.