Farmers Capital Bank Corporation (NASDAQ: FFKT) and Riverview Bancorp (NASDAQ:RVSB) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.
Institutional & Insider Ownership
51.6% of Farmers Capital Bank Corporation shares are owned by institutional investors. Comparatively, 56.0% of Riverview Bancorp shares are owned by institutional investors. 3.1% of Farmers Capital Bank Corporation shares are owned by insiders. Comparatively, 7.4% of Riverview Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a summary of current ratings and price targets for Farmers Capital Bank Corporation and Riverview Bancorp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Farmers Capital Bank Corporation||0||1||1||0||2.50|
Farmers Capital Bank Corporation presently has a consensus price target of $35.50, indicating a potential downside of 5.96%. Riverview Bancorp has a consensus price target of $6.00, indicating a potential downside of 24.43%. Given Farmers Capital Bank Corporation’s higher possible upside, analysts clearly believe Farmers Capital Bank Corporation is more favorable than Riverview Bancorp.
Farmers Capital Bank Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 1.1%. Riverview Bancorp pays an annual dividend of $0.09 per share and has a dividend yield of 1.1%. Farmers Capital Bank Corporation pays out 20.4% of its earnings in the form of a dividend. Riverview Bancorp pays out 24.3% 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.
This table compares Farmers Capital Bank Corporation and Riverview Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Farmers Capital Bank Corporation||17.32%||8.24%||0.93%|
Risk & Volatility
Farmers Capital Bank Corporation has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Riverview Bancorp has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500.
Earnings & Valuation
This table compares Farmers Capital Bank Corporation and Riverview Bancorp’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Farmers Capital Bank Corporation||$78.90 million||3.59||$14.73 million||$1.96||19.26|
|Riverview Bancorp||$46.18 million||3.87||$8.33 million||$0.37||21.46|
Farmers Capital Bank Corporation has higher revenue and earnings than Riverview Bancorp. Farmers Capital Bank Corporation is trading at a lower price-to-earnings ratio than Riverview Bancorp, indicating that it is currently the more affordable of the two stocks.
Farmers Capital Bank Corporation beats Riverview Bancorp on 9 of the 15 factors compared between the two stocks.
About Farmers Capital Bank Corporation
Farmers Capital Bank Corporation is a bank holding company. The Company provides a range of banking and bank-related services to customers throughout Central and Northern Kentucky. Their affiliated bank is United Bank & Capital Trust Company.
About Riverview Bancorp
Riverview Bancorp, Inc. (Riverview) is a savings and loan holding company of Riverview Community Bank (the Bank). The Company operates through two segments, which include banking operations performed by the Bank and trust and investment services performed by Riverview Asset Management Corp. (RAMCorp). The Company is engaged in the business of attracting deposits from the general public and using such funds in its primary market area to originate commercial business, commercial real estate, multi-family real estate, land, real estate construction, residential real estate and other consumer loans. Additionally, RAMCorp offers trust and investment services. Riverview Mortgage, a mortgage broker division of the Bank, originates mortgage loans for various mortgage companies in the Vancouver/Portland metropolitan areas, as well as for the Bank. The Bank’s Business and Professional Banking Division offers commercial and business banking services. It operates from over 20 branch offices.
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