Reviewing Rhinebeck Bancorp (NASDAQ:RBKB) and Citizens Financial Group (NYSE:CFG)

Citizens Financial Group (NYSE:CFG) and Rhinebeck Bancorp (NASDAQ:RBKB) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Institutional and Insider Ownership

94.9% of Citizens Financial Group shares are held by institutional investors. Comparatively, 23.9% of Rhinebeck Bancorp shares are held by institutional investors. 0.7% of Citizens Financial Group shares are held by insiders. Comparatively, 5.6% of Rhinebeck Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Citizens Financial Group and Rhinebeck Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Citizens Financial Group	0	5	15	2	2.86
Rhinebeck Bancorp	0	1	0	0	2.00

Citizens Financial Group presently has a consensus target price of $57.24, indicating a potential downside of 3.30%. Given Citizens Financial Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Citizens Financial Group is more favorable than Rhinebeck Bancorp.

Valuation and Earnings

This table compares Citizens Financial Group and Rhinebeck Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Citizens Financial Group	$12.36 billion	2.06	$1.51 billion	$3.57	16.58
Rhinebeck Bancorp	$54.24 million	2.54	-$8.62 million	$0.46	26.89

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

Volatility and Risk

Citizens Financial Group has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Rhinebeck Bancorp has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500.

Profitability

This table compares Citizens Financial Group and Rhinebeck Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Citizens Financial Group	14.17%	7.48%	0.78%
Rhinebeck Bancorp	7.20%	6.47%	0.65%

Summary

Citizens Financial Group beats Rhinebeck Bancorp on 12 of the 15 factors compared between the two stocks.

About Citizens Financial Group

Citizens Financial Group, Inc. operates as the bank holding company that provides retail and commercial banking products and services to individuals, small businesses, middle-market companies, corporations, and institutions in the United States. The company operates in two segments, Consumer Banking and Commercial Banking. The Consumer Banking segment offers deposit products, mortgage and home equity lending products, credit cards, business loans, wealth management, and investment services; and auto, education, and point-of-sale finance loans, as well as digital deposit products. This segment serves its customers through telephone service centers, as well as through its online and mobile platforms. The Commercial Banking segment provides various financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, and interest rate and commodity risk management solutions, as well as syndicated loans, corporate finance, mergers and acquisitions, and debt and equity capital markets services. This segment serves corporate banking, healthcare, technology, asset finance, franchise finance, leasing, asset-based lending, commercial real estate, mid-corporate, and private equity sponsor industries. The company was formerly known as RBS Citizens Financial Group, Inc. and changed its name to Citizens Financial Group, Inc. in April 2014. Citizens Financial Group, Inc. was founded in 1828 and is headquartered in Providence, Rhode Island.

About Rhinebeck Bancorp

Rhinebeck Bancorp, Inc. operates as the bank holding company for Rhinebeck Bank that provides banking and financial products and services to consumer and commercial customers in the Hudson Valley region of New York. The company offers deposits, including non-interest-bearing demand, interest bearing demand, money market, commercial and personal checking, individual retirement, and saving accounts, as well as certificates of deposit. It also provides direct and indirect automobile loans; non-residential commercial real estate loans; commercial business loans, such as term loans, revolving lines of credit, and lines of credit; residential mortgage and construction, one- to four-family residential real estate, multi-family real estate, commercial construction, and land development loans; and other consumer loans consist of home equity loans and lines of credit. In addition, the company offers retail brokerage and advisory services; life insurance services; and invests in mutual funds, annuities, and other assets. Rhinebeck Bancorp, Inc. was founded in 1860 and is headquartered in Poughkeepsie, New York. Rhinebeck Bancorp, Inc. is a subsidiary of Rhinebeck Bancorp, MHC.