Contrasting Riverview Bancorp (NASDAQ:RVSB) & Community Bancorp (NASDAQ:CMTV)

Community Bancorp (NASDAQ:CMTV) and Riverview Bancorp (NASDAQ:RVSB) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Risk and Volatility

Community Bancorp has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Riverview Bancorp has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.

Earnings and Valuation

This table compares Community Bancorp and Riverview Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Bancorp	$68.79 million	3.52	$16.97 million	$3.29	13.13
Riverview Bancorp	$64.74 million	1.84	-$4.34 million	($0.19)	-31.42

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

Institutional & Insider Ownership

69.6% of Riverview Bancorp shares are owned by institutional investors. 6.6% of Community Bancorp shares are owned by insiders. Comparatively, 3.9% of Riverview Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Community Bancorp and Riverview Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Bancorp	25.65%	15.97%	1.50%
Riverview Bancorp	-5.87%	3.12%	0.32%

Dividends

Community Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.3%. Riverview Bancorp pays an annual dividend of $0.08 per share and has a dividend yield of 1.3%. Community Bancorp pays out 30.4% of its earnings in the form of a dividend. Riverview Bancorp pays out -42.1% 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Community Bancorp and Riverview Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Bancorp	0	0	0	1	4.00
Riverview Bancorp	1	1	0	0	1.50

Summary

Community Bancorp beats Riverview Bancorp on 12 of the 15 factors compared between the two stocks.

About Community Bancorp

Community Bancorp. operates as the bank holding company for Community National Bank that provides a range of retail banking services to residents, businesses, nonprofit organizations, and municipalities. It provides various consumer banking products and services, including checking accounts, savings programs, ATMs, debit/credit cards, and night deposit facilities, as well as online, mobile, and telephone banking. The company’s business banking products and services comprise credit products for various business purposes, including financing for commercial business properties, equipment, inventories, and accounts receivable, as well as letters of credit; and business checking and other deposit accounts, cash management services, repurchase agreements, ACH and wire transfer services, and remote deposit capture. It offers commercial real estate lending products for commercial developers and investors, residential builders and developers, and community development entities, which include credit products to facilitate the purchase of land and/or build structures for business, for investors to develop residential or commercial properties, and for real estate secured financing of existing businesses, as well as financing to startups and other small businesses. The company’s residential real estate lending products include fixed-rate and adjustable rate residential mortgage and home equity loans; retail credit products include personal, automobile, and boat/recreational vehicle loans; and municipal and institutional banking products and services for state and local governments, schools, charities, membership, and not-for-profit associations comprise deposit accounts, tax-exempt loans, lines of credit, and term loans, as well as a collateralized secured deposit products. It operates through a main office in Derby; and eleven branch offices in northeastern and central Vermont. Community Bancorp. was founded in 1851 and is headquartered in Derby, Vermont.

About Riverview Bancorp

Riverview Bancorp, Inc. operates as a bank holding company for Riverview Bank that provides commercial banking services to small and medium size businesses, professionals, and wealth building individuals. It offers a range of deposit products, including demand deposits, negotiable order of withdrawal accounts, money market accounts, savings accounts, certificates of deposit, and retirement savings plans. The company also provides commercial business, commercial and residential real estate, multi-family real estate, land, real estate construction, and one-to-four family mortgage loans; other consumer loans, such as automobile, boat, motorcycle, recreational vehicle, savings account, and unsecured loans; and home equity lines of credit. In addition, it is involved in the provision of mortgage brokerage and mortgage loan servicing activities, as well as offers asset management services comprising trust, estate planning, and investment management. The company operates in Camas, Washougal, Stevenson, White Salmon, Battle Ground, Goldendale, Ridgefield, and Vancouver, Washington, as well as Portland, Gresham, Tualatin, and Aumsville, Oregon. Riverview Bancorp, Inc. was founded in 1923 and is based in Vancouver, Washington.