Head to Head Review: ChoiceOne Financial Services (NASDAQ:COFS) versus Richmond Mutual Bancorporation (NASDAQ:RMBI)

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

Risk & Volatility

ChoiceOne Financial Services has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Richmond Mutual Bancorporation has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.

Earnings & Valuation

This table compares ChoiceOne Financial Services and Richmond Mutual Bancorporation”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ChoiceOne Financial Services	$139.10 million	2.10	$26.73 million	$3.26	9.98
Richmond Mutual Bancorporation	$85.28 million	1.78	$9.38 million	$0.91	15.27

ChoiceOne Financial Services has higher revenue and earnings than Richmond Mutual Bancorporation. ChoiceOne Financial Services 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

ChoiceOne Financial Services pays an annual dividend of $1.12 per share and has a dividend yield of 3.4%. Richmond Mutual Bancorporation pays an annual dividend of $0.56 per share and has a dividend yield of 4.0%. ChoiceOne Financial Services pays out 34.4% of its earnings in the form of a dividend. Richmond Mutual Bancorporation pays out 61.5% 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. ChoiceOne Financial Services has increased its dividend for 13 consecutive years.

Profitability

This table compares ChoiceOne Financial Services and Richmond Mutual Bancorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ChoiceOne Financial Services	19.21%	12.44%	1.04%
Richmond Mutual Bancorporation	10.99%	6.97%	0.63%

Institutional & Insider Ownership

19.9% of ChoiceOne Financial Services shares are held by institutional investors. Comparatively, 26.5% of Richmond Mutual Bancorporation shares are held by institutional investors. 7.9% of ChoiceOne Financial Services shares are held by insiders. Comparatively, 8.2% of Richmond Mutual Bancorporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for ChoiceOne Financial Services and Richmond Mutual Bancorporation, as provided by MarketBeat.

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

ChoiceOne Financial Services presently has a consensus target price of $39.00, suggesting a potential upside of 19.89%. Given ChoiceOne Financial Services’ stronger consensus rating and higher probable upside, equities analysts clearly believe ChoiceOne Financial Services is more favorable than Richmond Mutual Bancorporation.

Summary

ChoiceOne Financial Services beats Richmond Mutual Bancorporation on 13 of the 17 factors compared between the two stocks.

About ChoiceOne Financial Services

ChoiceOne Financial Services, Inc. operates as the bank holding company for ChoiceOne Bank that provides banking services to corporations, partnerships, and individuals in Michigan. The company offers various deposit products, including time, savings, and demand deposits, safe deposit, and automated transaction machine services. It also provides commercial lending products, such as business, industry, agricultural, construction, inventory, and real estate loans; and consumer loans comprising direct and indirect loans to consumers and purchasers of residential and real properties. In addition, the company offers alternative investment products, which include annuities and mutual funds; and sells insurance policies, such as life and health for commercial and consumer clients. Further, it provides trust and wealth management services. ChoiceOne Financial Services, Inc. was founded in 1898 and is headquartered in Sparta, Michigan.

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.