Community West Bancshares (NASDAQ:CWBC – Get Rating) and Richmond Mutual Bancorporation (NASDAQ:RMBI – Get Rating) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Risk & Volatility:
Community West Bancshares has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Richmond Mutual Bancorporation has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.
Community West Bancshares pays an annual dividend of $0.30 per share and has a dividend yield of 2.1%. Richmond Mutual Bancorporation pays an annual dividend of $0.40 per share and has a dividend yield of 2.9%. Community West Bancshares pays out 18.8% of its earnings in the form of a dividend. Richmond Mutual Bancorporation pays out 39.6% 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. Community West Bancshares has increased its dividend for 2 consecutive years and Richmond Mutual Bancorporation has increased its dividend for 2 consecutive years.
Earnings & Valuation:
This table compares Community West Bancshares and Richmond Mutual Bancorporation’s gross revenue, earnings per share and valuation.
|Gross Revenue:||Price/Sales Ratio:||Net Income:||Earnings Per Share:||Price/Earnings Ratio:|
|Community West Bancshares||$49.83 million||2.49 am||$13.10 million||$1.60||8.94:|
|Richmond Mutual Bancorporation||$51.34 million||3:26 a.m||$11.15 million||$1.01||13.84:|
Community West Bancshares has higher earnings, but lower revenue than Richmond Mutual Bancorporation. Community West Bancshares 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.
This is a summary of current ratings and recommendations for Community West Bancshares and Richmond Mutual Bancorporation, as provided by MarketBeat.
|Sell Ratings:||Hold Ratings:||Buy Ratings:||Strong Buy Ratings:||Rating Score:|
|Community West Bancshares||0:||1:||0:||0:||2.00 am|
|Richmond Mutual Bancorporation||0:||0:||0:||0:||N/A|
Insider & Institutional Ownership
27.2% of Community West Bancshares shares are owned by institutional investors. Comparatively, 18.9% of Richmond Mutual Bancorporation shares are owned by institutional investors. 22.2% of Community West Bancshares shares are owned by insiders. Comparatively, 5.9% of Richmond Mutual Bancorporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Community West Bancshares and Richmond Mutual Bancorporation’s net margins, return on equity and return on assets.
|Net Margins:||Return on Equity:||Return on Assets:|
|Community West Bancshares||27.71%||14.02%||1.25%|
|Richmond Mutual Bancorporation||22.31%||6.64%||0.94%|
Community West Bancshares beats Richmond Mutual Bancorporation on 9 of the 13 factors compared between the two stocks.
About Community West Bancshares: (Get Rating)
Community West Bancshares operates as the bank holding company for Community West Bank, NA that provides various financial products and services in California. The company offers deposit products, such as checking accounts, savings accounts, money market accounts, and fixed rate and fixed maturity certificates of deposit; and cash management products. It also provides commercial, commercial real estate, consumer, manufactured housing, and small business administration loans, as well as agricultural loans for real estate and operating lines; home equity lines of credit collateralized by residential real estate; single family real estate loans; and installment loans consisting of automobile and general-purpose loans. The company serves small to medium-sized businesses and their owners, professionals, high-net worth individuals, and non-profit organizations. It operates through a network of seven branch banking offices in Goleta, Santa Barbara, Santa Maria, Ventura, San Luis Obispo, Oxnard, and Paso Robles. Community West Bancshares was founded in 1989 and is headquartered in Goleta, California.
About Richmond Mutual Bancorporation: (Get Rating)
Richmond Mutual Bancorporation, Inc. operates as a holding company for First Bank Richmond that provides various banking services. The company accepts various deposits, including savings deposit accounts, money market accounts NOW and demand accounts, and certificates of deposit. It 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, the company engages in the lease financing business; and provision of fee-based financial services including trust and estate administration, investment management, retirement plan administration, and private banking services. It operates through 12 full-service and one limited-service banking offices with seven full-service and one limited-service offices located in Indiana; five offices located in Ohio; one full-service banking office and four other branch offices are located in Richmond, Indiana; two other offices in Cambridge City, Centerville, Richmond, and Shelbyville, Indiana; two offices in Sidney and Ohio; two offices in Piqua and one office in Troy, Ohio; and a loan production office in Columbus, Ohio. Richmond Mutual Bancorporation, Inc. was founded in 1887 and is headquartered in Richmond, Indiana.
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