Analyzing Richmond Mutual Bancorporation (NASDAQ:RMBI) and Chiba Bank (OTCMKTS:CHBAY)
by Mitch Edgeman · The Markets DailyRichmond Mutual Bancorporation (NASDAQ:RMBI – Get Free Report) and Chiba Bank (OTCMKTS:CHBAY – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Richmond Mutual Bancorporation and Chiba Bank, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Richmond Mutual Bancorporation | 0 | 0 | 0 | 1 | 4.00 |
| Chiba Bank | 0 | 0 | 0 | 1 | 4.00 |
Profitability
This table compares Richmond Mutual Bancorporation and Chiba Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Richmond Mutual Bancorporation | 13.00% | 8.30% | 0.79% |
| Chiba Bank | 20.96% | 8.25% | 0.49% |
Dividends
Richmond Mutual Bancorporation pays an annual dividend of $0.60 per share and has a dividend yield of 3.8%. Chiba Bank pays an annual dividend of $1.23 per share and has a dividend yield of 1.4%. Richmond Mutual Bancorporation pays out 49.6% of its earnings in the form of a dividend. Chiba Bank pays out 26.1% 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. Richmond Mutual Bancorporation has raised its dividend for 1 consecutive years. Richmond Mutual Bancorporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
Richmond Mutual Bancorporation has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500. Comparatively, Chiba Bank has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500.
Earnings and Valuation
This table compares Richmond Mutual Bancorporation and Chiba Bank”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Richmond Mutual Bancorporation | $90.97 million | 2.88 | $11.58 million | $1.21 | 12.93 |
| Chiba Bank | $2.96 billion | 4.73 | $620.82 million | $4.72 | 19.12 |
Chiba Bank has higher revenue and earnings than Richmond Mutual Bancorporation. Richmond Mutual Bancorporation is trading at a lower price-to-earnings ratio than Chiba Bank, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
26.5% of Richmond Mutual Bancorporation shares are owned by institutional investors. 8.2% of Richmond Mutual Bancorporation shares are owned by company 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.
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 Chiba Bank
The Chiba Bank, Ltd., together with its subsidiaries, provides banking products and services in Japan and internationally. The company offers various deposit products, including savings, time deposits, currency deposits, investment trusts, bonds, and pensions; loans, which include mortgages, renovation loans, photovoltaic, vehicle, education, and other loan products; and insurance products, such as annuity, life, medical, student, death, and travel insurance. It also offers debit and credit cards, as well as internet banking services. In addition, the company engages in securities, investment management and advisory, software development, commissioned computation tasks, research and investigation of IT and financial technologies, leasing, operation, and management of investment funds, mergers and acquisition advisory, credit guarantee businesses, management and collection of claims businesses. Further, it provides loan guarantees and fee collection services; accounting, general administration entrustment, and temporary staff services; and is involved in outsourcing of operational business. Additionally, it rents and maintains office buildings and welfare facilities; provides research, survey, and consulting services; purchases and sells supplies and consumer goods; and engages in renewable energy generation. The company serves individuals and corporations. The Chiba Bank, Ltd. was incorporated in 1943 and is headquartered in Chiba City, Japan.