Financial Review: Richmond Mutual Bancorporation (NASDAQ:RMBI) versus HarborOne Bancorp (NASDAQ:HONE)

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for HarborOne Bancorp and Richmond Mutual Bancorporation, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HarborOne Bancorp	0	1	0	0	2.00
Richmond Mutual Bancorporation	0	0	0	0	0.00

HarborOne Bancorp currently has a consensus price target of $13.00, suggesting a potential upside of 1.25%. Given HarborOne Bancorp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe HarborOne Bancorp is more favorable than Richmond Mutual Bancorporation.

Valuation and Earnings

This table compares HarborOne Bancorp and Richmond Mutual Bancorporation”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HarborOne Bancorp	$286.14 million	1.98	$16.08 million	$0.28	45.86
Richmond Mutual Bancorporation	$42.68 million	3.79	$9.49 million	$0.86	17.22

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

Institutional and Insider Ownership

65.0% of HarborOne Bancorp shares are held by institutional investors. Comparatively, 26.5% of Richmond Mutual Bancorporation shares are held by institutional investors. 4.9% of HarborOne Bancorp shares are held by company insiders. Comparatively, 8.2% of Richmond Mutual Bancorporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

HarborOne Bancorp has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Richmond Mutual Bancorporation has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Profitability

This table compares HarborOne Bancorp and Richmond Mutual Bancorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HarborOne Bancorp	3.68%	3.82%	0.38%
Richmond Mutual Bancorporation	10.62%	6.57%	0.60%

Dividends

HarborOne Bancorp pays an annual dividend of $0.32 per share and has a dividend yield of 2.5%. Richmond Mutual Bancorporation pays an annual dividend of $0.56 per share and has a dividend yield of 3.8%. HarborOne Bancorp pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Richmond Mutual Bancorporation pays out 65.1% of its earnings in the form of a dividend. Richmond Mutual Bancorporation is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Richmond Mutual Bancorporation beats HarborOne Bancorp on 8 of the 15 factors compared between the two stocks.

About HarborOne Bancorp

HarborOne Bancorp, Inc. operates as the holding company for HarborOne Bank that provides financial services to individuals, families, small and mid-size businesses, and municipalities. The company operates in two segments, HarborOne Bank and HarborOne Mortgage. Its primary deposit products include checking, money market, savings, and term certificate of deposit accounts; and primary lending products comprise commercial real estate, commercial, residential mortgages, home equity, and consumer loans. The company also originates, sells, and services residential mortgage loans. In addition, it provides various educational services, such as free digital content, webinars, and recordings for small business and personal financial education under the HarborOne U name. The company operates through a network of full-service branches located in Massachusetts and Rhode Island, as well as commercial lending offices in each of Boston, Massachusetts, and Providence, Rhode Island, as well as administrative offices in Brockton, Massachusetts, as well as ATM locations in Massachusetts. HarborOne Bancorp, Inc. was founded in 1917 and is headquartered in Brockton, Massachusetts.

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.