Richmond Mutual Bancorporation (NASDAQ:RMBI) and Franklin Financial Services (NASDAQ:FRAF) Head to Head Contrast

Volatility & Risk

Franklin Financial Services has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, Richmond Mutual Bancorporation has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.

Valuation & Earnings

This table compares Franklin Financial Services and Richmond Mutual Bancorporation”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franklin Financial Services	$72.51 million	1.87	$13.60 million	$3.17	9.70
Richmond Mutual Bancorporation	$42.68 million	3.46	$9.49 million	$0.86	15.72

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

Insider and Institutional Ownership

24.8% of Franklin Financial Services shares are held by institutional investors. Comparatively, 26.5% of Richmond Mutual Bancorporation shares are held by institutional investors. 6.9% of Franklin 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Franklin Financial Services	12.40%	10.19%	0.70%
Richmond Mutual Bancorporation	10.62%	6.57%	0.60%

Dividends

Franklin Financial Services pays an annual dividend of $1.28 per share and has a dividend yield of 4.2%. Richmond Mutual Bancorporation pays an annual dividend of $0.56 per share and has a dividend yield of 4.1%. Franklin Financial Services pays out 40.4% of its earnings in the form of a dividend. Richmond Mutual Bancorporation pays out 65.1% 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. Franklin Financial Services is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Franklin Financial Services beats Richmond Mutual Bancorporation on 8 of the 13 factors compared between the two stocks.

About Franklin Financial Services

Franklin Financial Services Corporation operates as the bank holding company for Farmers and Merchants Trust Company of Chambersburg that provides commercial, retail banking, and trust services to businesses, individuals, governmental entities, and non-profit organizations in Pennsylvania. It offers various deposit products, including checking, savings, money management, and time deposit accounts, as well as demand deposits. The company also provides commercial real estate, construction and land development, commercial and industrial, and residential mortgage loans, as well as installment and revolving loans; consumer loans comprising unsecured personal lines of credit and installment loans; and secured and unsecured commercial and industrial loans, including accounts receivable and inventory financing, and commercial equipment financing. In addition, it offers various investment and trust services comprising estate planning and administration, corporate and personal trust fund management, pension, and profit sharing and other employee benefit funds management services, and custodial services, as well as non-trust related investment services; sells mutual funds, annuities, and insurance products; and offers safe deposit, pension, and fiduciary services. Further, the company engages in non-bank investment activities, such as venture capital investments. The company was founded in 1906 and is headquartered in Chambersburg, Pennsylvania.

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.