Critical Comparison: Bank OZK (NASDAQ:OZK) vs. Richmond Mutual Bancorporation (NASDAQ:RMBI)

Bank OZK (NASDAQ:OZK) and Richmond Mutual Bancorporation (NASDAQ:RMBI) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Earnings & Valuation

This table compares Bank OZK and Richmond Mutual Bancorporation”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank OZK	$2.25 billion	2.09	$690.78 million	$5.97	6.95
Richmond Mutual Bancorporation	$42.23 million	3.38	$9.49 million	$0.87	14.83

Bank OZK has higher revenue and earnings than Richmond Mutual Bancorporation. Bank OZK 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.

Risk & Volatility

Bank OZK has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Richmond Mutual Bancorporation has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bank OZK	27.04%	14.50%	2.01%
Richmond Mutual Bancorporation	10.37%	6.44%	0.57%

Analyst Ratings

This is a summary of current ratings and recommmendations for Bank OZK and Richmond Mutual Bancorporation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank OZK	2	6	0	0	1.75
Richmond Mutual Bancorporation	0	0	0	0	N/A

Bank OZK presently has a consensus target price of $46.57, suggesting a potential upside of 12.25%. Given Bank OZK’s higher probable upside, equities analysts plainly believe Bank OZK is more favorable than Richmond Mutual Bancorporation.

Dividends

Bank OZK pays an annual dividend of $1.60 per share and has a dividend yield of 3.9%. Richmond Mutual Bancorporation pays an annual dividend of $0.56 per share and has a dividend yield of 4.3%. Bank OZK pays out 26.8% of its earnings in the form of a dividend. Richmond Mutual Bancorporation pays out 64.4% 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. Bank OZK has increased its dividend for 28 consecutive years.

Institutional & Insider Ownership

86.2% of Bank OZK shares are owned by institutional investors. Comparatively, 26.5% of Richmond Mutual Bancorporation shares are owned by institutional investors. 6.7% of Bank OZK 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Bank OZK beats Richmond Mutual Bancorporation on 11 of the 15 factors compared between the two stocks.

About Bank OZK

Bank OZK provides various retail and commercial banking services for individuals and businesses in the United States. The company offers deposit services, including non-interest bearing checking, interest bearing transaction, business sweep, savings, money market, individual retirement, and other accounts, as well as time and reciprocal deposits. It also provides trust and wealth services, such as personal trusts, custodial accounts, investment management accounts, and retirement accounts, as well as corporate trust services, including trustee, paying agent and registered transfer agent services, and other related services. In addition, the company offers treasury management services comprising automated clearing house, wire transfer, transaction reporting, wholesale lockbox, remote deposit capture, automated credit line transfer, reconciliation, positive pay, commercial card, and other services, as well as zero balance and investment sweep accounts. Further, it provides real estate, consumer, small business, indirect recreational vehicle and marine, equipment, agricultural, commercial and industrial, government guaranteed, lines of credit, homebuilder, and affordable housing loans; lender and structured, business aviation, and subscription financing services; and mortgage and other lending products. Additionally, the company offers ATMs; telephone, online, and mobile banking services; credit and debit cards; safe deposit boxes; and other products and services. The company was formerly known as Bank of the Ozarks and changed its name to Bank OZK in July 2018. Bank OZK was founded in 1903 and is headquartered in Little Rock, Arkansas.

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.