Contrasting Riverview Bancorp (NASDAQ:RVSB) and Red River Bancshares (NASDAQ:RRBI)

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

Earnings & Valuation

This table compares Riverview Bancorp and Red River Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Riverview Bancorp	$64.74 million	1.82	-$4.34 million	($0.19)	-31.05
Red River Bancshares	$169.85 million	3.88	$42.76 million	$6.95	14.40

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

Institutional & Insider Ownership

69.6% of Riverview Bancorp shares are held by institutional investors. Comparatively, 27.6% of Red River Bancshares shares are held by institutional investors. 3.9% of Riverview Bancorp shares are held by insiders. Comparatively, 16.6% of Red River Bancshares shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Riverview Bancorp and Red River Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Riverview Bancorp	1	1	0	0	1.50
Red River Bancshares	0	3	1	0	2.25

Red River Bancshares has a consensus price target of $106.00, suggesting a potential upside of 5.89%. Given Red River Bancshares’ stronger consensus rating and higher probable upside, analysts plainly believe Red River Bancshares is more favorable than Riverview Bancorp.

Dividends

Riverview Bancorp pays an annual dividend of $0.08 per share and has a dividend yield of 1.4%. Red River Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 1.0%. Riverview Bancorp pays out -42.1% of its earnings in the form of a dividend. Red River Bancshares pays out 14.4% 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. Red River Bancshares has raised its dividend for 3 consecutive years. Riverview Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Riverview Bancorp has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, Red River Bancshares has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.

Profitability

This table compares Riverview Bancorp and Red River Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Riverview Bancorp	-5.87%	3.12%	0.32%
Red River Bancshares	26.25%	12.47%	1.39%

Summary

Red River Bancshares beats Riverview Bancorp on 13 of the 17 factors compared between the two stocks.

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.

About Red River Bancshares

Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit. In addition, the company provides treasury management, private banking, and brokerage; investment advisory, financial planning, and a suite of retirement plans; debit and credit cards, direct deposits, cashier's checks, and wire transfer services; online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and banking services in person, through ATMs, drive-through facilities, night deposits, telephone, mail, mobile banking, and remote deposits. Red River Bancshares, Inc. was incorporated in 1998 and is headquartered in Alexandria, Louisiana.