Head to Head Analysis: Richmond Mutual Bancorporation (NASDAQ:RMBI) vs. HarborOne Bancorp (NASDAQ:HONE)

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

Earnings and Valuation

This table compares Richmond Mutual Bancorporation and HarborOne Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Richmond Mutual Bancorporation	$72.02 million	2.23	$9.49 million	$0.86	17.13
HarborOne Bancorp	$160.14 million	3.54	$16.08 million	$0.28	46.00

HarborOne Bancorp has higher revenue and earnings than Richmond Mutual Bancorporation. Richmond Mutual Bancorporation is trading at a lower price-to-earnings ratio than HarborOne Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Richmond Mutual Bancorporation and HarborOne Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Richmond Mutual Bancorporation	0	0	0	0	0.00
HarborOne Bancorp	0	1	0	0	2.00

HarborOne Bancorp has a consensus price target of $13.00, suggesting a potential upside of 0.93%. Given HarborOne Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe HarborOne Bancorp is more favorable than Richmond Mutual Bancorporation.

Volatility and Risk

Richmond Mutual Bancorporation has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, HarborOne Bancorp has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Insider & Institutional Ownership

26.5% of Richmond Mutual Bancorporation shares are owned by institutional investors. Comparatively, 65.0% of HarborOne Bancorp shares are owned by institutional investors. 8.2% of Richmond Mutual Bancorporation shares are owned by insiders. Comparatively, 4.9% of HarborOne Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Richmond Mutual Bancorporation	10.62%	6.57%	0.60%
HarborOne Bancorp	3.68%	3.82%	0.38%

Dividends

Richmond Mutual Bancorporation pays an annual dividend of $0.56 per share and has a dividend yield of 3.8%. HarborOne Bancorp pays an annual dividend of $0.32 per share and has a dividend yield of 2.5%. Richmond Mutual Bancorporation pays out 65.1% of its earnings in the form of a dividend. HarborOne Bancorp pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Richmond Mutual Bancorporation is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

HarborOne Bancorp beats Richmond Mutual Bancorporation on 8 of the 15 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 HarborOne Bancorp

HarborOne Bancorp, Inc. operates as the holding company for HarborOne Bank that provides financial services to individuals, families, small and mid-size businesses, and municipalities. The company operates in two segments, HarborOne Bank and HarborOne Mortgage. Its primary deposit products include checking, money market, savings, and term certificate of deposit accounts; and primary lending products comprise commercial real estate, commercial, residential mortgages, home equity, and consumer loans. The company also originates, sells, and services residential mortgage loans. In addition, it provides various educational services, such as free digital content, webinars, and recordings for small business and personal financial education under the HarborOne U name. The company operates through a network of full-service branches located in Massachusetts and Rhode Island, as well as commercial lending offices in each of Boston, Massachusetts, and Providence, Rhode Island, as well as administrative offices in Brockton, Massachusetts, as well as ATM locations in Massachusetts. HarborOne Bancorp, Inc. was founded in 1917 and is headquartered in Brockton, Massachusetts.