HomeStreet (NASDAQ:HMST) & Richmond Mutual Bancorporation (NASDAQ:RMBI) Financial Comparison

HomeStreet (NASDAQ:HMST) and Richmond Mutual Bancorporation (NASDAQ:RMBI) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares HomeStreet and Richmond Mutual Bancorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HomeStreet	-8.97%	-0.43%	-0.02%
Richmond Mutual Bancorporation	11.72%	6.93%	0.62%

Insider and Institutional Ownership

74.7% of HomeStreet shares are owned by institutional investors. Comparatively, 26.5% of Richmond Mutual Bancorporation shares are owned by institutional investors. 4.6% of HomeStreet shares are owned by company insiders. Comparatively, 8.2% of Richmond Mutual Bancorporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares HomeStreet and Richmond Mutual Bancorporation’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HomeStreet	$441.66 million	0.47	-$27.51 million	($2.13)	-5.19
Richmond Mutual Bancorporation	$42.05 million	3.08	$9.49 million	$0.87	13.44

Richmond Mutual Bancorporation has lower revenue, but higher earnings than HomeStreet. HomeStreet 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.

Analyst Ratings

This is a summary of current ratings and target prices for HomeStreet and Richmond Mutual Bancorporation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HomeStreet	0	3	1	0	2.25
Richmond Mutual Bancorporation	0	0	0	0	N/A

HomeStreet presently has a consensus price target of $12.00, indicating a potential upside of 8.50%. Given HomeStreet’s higher probable upside, research analysts clearly believe HomeStreet is more favorable than Richmond Mutual Bancorporation.

Volatility and Risk

HomeStreet has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Richmond Mutual Bancorporation has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Summary

Richmond Mutual Bancorporation beats HomeStreet on 8 of the 13 factors compared between the two stocks.

About HomeStreet

HomeStreet, Inc. operates as the bank holding company for HomeStreet Bank that provides commercial, mortgage, and consumer/retail banking services in the Western United States. The company offers personal and business checking, savings, interest-bearing negotiable order of withdrawal, and money market accounts, as well as certificates of deposit; credit cards; insurance; and treasury management services. Its loan products include commercial real estate (CRE), multifamily, construction and land development, owner occupied CRE and commercial business loans; and single family, home equity, and other loans. In addition, the company offers online, mobile, and telephone banking. It serves small and medium sized businesses, real estate investors, professional firms, and individuals. The company operates through branches and ATMs. The company was formerly known as Continental Mortgage and Loan Company. HomeStreet, Inc. was incorporated in 1921 and is headquartered in Seattle, Washington.

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.