Red River Bancshares (NASDAQ:RRBI – Get Rating) and OFG Bancorp (NYSE:OFG – Get Rating) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.
Valuation and Earnings:
This table compares Red River Bancshares and OFG Bancorp’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue:||Price/Sales Ratio:||Net Income:||Earnings Per Share:||Price/Earnings Ratio:|
|Red River Bancshares||$101.83 million||3.81:||$32.95 million||$4.45||12:15 p.m|
|OFG Bancorp||$578.46 million||2.13:||$146.15 million||$3.01||8:44 a.m|
OFG Bancorp has higher revenue and earnings than Red River Bancshares. OFG 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.
Red River Bancshares pays an annual dividend of $0.28 per share and has a dividend yield of 0.5%. OFG Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 2.4%. Red River Bancshares pays out 6.3% of its earnings in the form of a dividend. OFG Bancorp pays out 19.9% 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 1 consecutive year and OFG Bancorp has raised its dividend for 2 consecutive years. OFG Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Red River Bancshares and OFG Bancorp’s net margins, return on equity and return on assets.
|Net Margins:||Return on Equity:||Return on Assets:|
|Red River Bancshares||32.19%||11.18%||1.05%|
This is a breakdown of current recommendations for Red River Bancshares and OFG Bancorp, as reported by MarketBeat.com.
|Sell Ratings:||Hold Ratings:||Buy Ratings:||Strong Buy Ratings:||Rating Score:|
|Red River Bancshares||0:||0:||0:||0:||N/A|
OFG Bancorp has a consensus target price of $32.50, indicating a potential upside of 27.95%. Given OFG Bancorp’s higher probable upside, analysts clearly believe OFG Bancorp is more favorable than Red River Bancshares.
Institutional and Insider Ownership
17.9% of Red River Bancshares shares are held by institutional investors. Comparatively, 94.0% of OFG Bancorp shares are held by institutional investors. 22.5% of Red River Bancshares shares are held by company insiders. Comparatively, 2.7% of OFG Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility:
Red River Bancshares has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, OFG Bancorp has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.
OFG Bancorp beats Red River Bancshares on 10 of the 16 factors compared between the two stocks.
Red River Bancshares Company Profile (Get Rating)
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 also 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. It operates a network of 27 banking centers throughout Louisiana and two combined loan and deposit production offices in Lafayette and New Orleans, Louisiana. The company was incorporated in 1998 and is headquartered in Alexandria, Louisiana.
OFG Bancorp Company Profile: (Get Rating)
OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments. Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, as well as time deposit products; commercial, consumer, auto, and mortgage lending services; financial planning and insurance services; and corporate and individual trust, and retirement services. It also provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. In addition, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of US government sponsored agencies, and US Treasury securities and money market instruments; and management and participation in public offerings and private placements of debt and equity securities. Furthermore, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company operates through a network of 50 branches in Puerto Rico and 2 branches in the USVI. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.
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