Citizens Financial Services (NASDAQ:CZFS) and Red River Bancshares (NASDAQ:RRBI) Financial Survey

Red River Bancshares (NASDAQ:RRBI) and Citizens Financial Services (NASDAQ:CZFS) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Analyst Ratings

This is a summary of current ratings and price targets for Red River Bancshares and Citizens Financial Services, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red River Bancshares	0	0	0	0	0.00
Citizens Financial Services	0	0	1	0	3.00

Citizens Financial Services has a consensus target price of $53.00, indicating a potential downside of 24.75%. Given Citizens Financial Services’ stronger consensus rating and higher probable upside, analysts plainly believe Citizens Financial Services is more favorable than Red River Bancshares.

Insider and Institutional Ownership

27.6% of Red River Bancshares shares are owned by institutional investors. Comparatively, 22.5% of Citizens Financial Services shares are owned by institutional investors. 16.4% of Red River Bancshares shares are owned by insiders. Comparatively, 6.3% of Citizens Financial Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Red River Bancshares has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Citizens Financial Services has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Profitability

This table compares Red River Bancshares and Citizens Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red River Bancshares	21.42%	10.76%	1.08%
Citizens Financial Services	16.24%	9.86%	0.95%

Dividends

Red River Bancshares pays an annual dividend of $0.36 per share and has a dividend yield of 0.6%. Citizens Financial Services pays an annual dividend of $1.96 per share and has a dividend yield of 2.8%. Red River Bancshares pays out 7.6% of its earnings in the form of a dividend. Citizens Financial Services pays out 33.9% 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.

Earnings & Valuation

This table compares Red River Bancshares and Citizens Financial Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red River Bancshares	$149.60 million	2.72	$34.88 million	$4.75	12.64
Citizens Financial Services	$138.72 million	2.42	$17.81 million	$5.79	12.16

Red River Bancshares has higher revenue and earnings than Citizens Financial Services. Citizens Financial Services is trading at a lower price-to-earnings ratio than Red River Bancshares, indicating that it is currently the more affordable of the two stocks.

Summary

Red River Bancshares beats Citizens Financial Services on 11 of the 16 factors compared between the two stocks.

About Red River Bancshares

Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit. In addition, the company provides treasury management, private banking, and brokerage; investment advisory, financial planning, and a suite of retirement plans; debit and credit cards, direct deposits, cashier's checks, and wire transfer services; online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and banking services in person, through ATMs, drive-through facilities, night deposits, telephone, mail, mobile banking, and remote deposits. Red River Bancshares, Inc. was incorporated in 1998 and is headquartered in Alexandria, Louisiana.

About Citizens Financial Services

Citizens Financial Services, Inc., a bank holding company, provides various banking products and services for individual, business, governmental, and institutional customers. The company accepts various deposit products, such as checking, savings, and time deposit accounts. Its loan products include residential, commercial, and agricultural real estate loans; commercial and industrial loans; state and political subdivision loans; and consumer loans, as well as various other specialized financial services. The company also provides professional trust administration, investment management services, estate planning and administration, custody of securities, and individual retirement accounts. In addition, it offers brokerage and financial planning services, as well as assistance in various oil and gas leasing matters; and provides mutual funds, annuities, and health and life insurance products. Citizens Financial Services, Inc. was incorporated in 1984 and is headquartered in Mansfield, Pennsylvania.