Contrasting Peoples Bancorp of North Carolina (NASDAQ:PEBK) and Richmond Mutual Bancorporation (NASDAQ:RMBI)
by Kim Johansen · The Markets DailyProfitability
This table compares Richmond Mutual Bancorporation and Peoples Bancorp of North Carolina’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Richmond Mutual Bancorporation | 10.99% | 6.97% | 0.63% |
| Peoples Bancorp of North Carolina | 15.08% | 12.85% | 0.98% |
Valuation and Earnings
This table compares Richmond Mutual Bancorporation and Peoples Bancorp of North Carolina”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Richmond Mutual Bancorporation | $85.28 million | 1.61 | $9.38 million | $0.91 | 13.81 |
| Peoples Bancorp of North Carolina | $72.53 million | 2.03 | $16.35 million | $2.98 | 9.03 |
Peoples Bancorp of North Carolina has lower revenue, but higher earnings than Richmond Mutual Bancorporation. Peoples Bancorp of North Carolina 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.
Institutional and Insider Ownership
26.5% of Richmond Mutual Bancorporation shares are held by institutional investors. Comparatively, 43.8% of Peoples Bancorp of North Carolina shares are held by institutional investors. 8.2% of Richmond Mutual Bancorporation shares are held by company insiders. Comparatively, 16.9% of Peoples Bancorp of North Carolina shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Dividends
Richmond Mutual Bancorporation pays an annual dividend of $0.56 per share and has a dividend yield of 4.5%. Peoples Bancorp of North Carolina pays an annual dividend of $0.76 per share and has a dividend yield of 2.8%. Richmond Mutual Bancorporation pays out 61.5% of its earnings in the form of a dividend. Peoples Bancorp of North Carolina pays out 25.5% 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.
Volatility & Risk
Richmond Mutual Bancorporation has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, Peoples Bancorp of North Carolina has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.
Summary
Peoples Bancorp of North Carolina beats Richmond Mutual Bancorporation on 9 of the 13 factors compared between the two stocks.
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.
About Peoples Bancorp of North Carolina
Peoples Bancorp of North Carolina, Inc. operates as the bank holding company for Peoples Bank that provides various banking products and services for individuals and small-to medium-sized businesses. It offers checking, savings, money market, and retirement accounts; certificates of deposits; and credit and debit cards. The company also originates commercial real estate loans, commercial loans, construction and land development loans, and residential mortgage loans; and individual taxpayer identification number mortgage loans, as well as agricultural loans. In addition, it provides investment counseling and non-deposit investment products, such as stocks, bonds, mutual funds, tax deferred annuities, and related brokerage services; and real estate appraisal and brokerage services. Further, the company operates as a clearing-house for the provision of appraisal services for community banks; and acquires, manages, and disposes real property, other collateral, and other assets obtained in the ordinary course of collecting debts. Peoples Bancorp of North Carolina, Inc. was founded in 1912 and is headquartered in Newton, North Carolina.