Critical Comparison: Riverview Bancorp (NASDAQ:RVSB) vs. Northeast Indiana Bancorp (OTCMKTS:NIDB)

Northeast Indiana Bancorp (OTCMKTS:NIDB) and Riverview Bancorp (NASDAQ:RVSB) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Northeast Indiana Bancorp and Riverview Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northeast Indiana Bancorp	0	0	0	0	N/A
Riverview Bancorp	0	0	0	0	N/A

Institutional & Insider Ownership

69.6% of Riverview Bancorp shares are held by institutional investors. 19.8% of Northeast Indiana Bancorp shares are held by company insiders. Comparatively, 6.8% of Riverview 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.

Volatility & Risk

Northeast Indiana Bancorp has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Riverview Bancorp has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Dividends

Northeast Indiana Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 4.0%. Riverview Bancorp pays an annual dividend of $0.08 per share and has a dividend yield of 1.7%. Northeast Indiana Bancorp pays out 33.2% of its earnings in the form of a dividend. Riverview Bancorp pays out 44.4% 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. Northeast Indiana Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Northeast Indiana Bancorp and Riverview Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northeast Indiana Bancorp	14.16%	N/A	N/A
Riverview Bancorp	2.86%	3.69%	0.37%

Valuation & Earnings

This table compares Northeast Indiana Bancorp and Riverview Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northeast Indiana Bancorp	$27.36 million	1.51	$4.26 million	$2.05	8.34
Riverview Bancorp	$66.80 million	1.49	$3.80 million	$0.18	26.22

Northeast Indiana Bancorp has higher earnings, but lower revenue than Riverview Bancorp. Northeast Indiana Bancorp is trading at a lower price-to-earnings ratio than Riverview Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Northeast Indiana Bancorp beats Riverview Bancorp on 7 of the 13 factors compared between the two stocks.

About Northeast Indiana Bancorp

Northeast Indiana Bancorp, Inc. operates as the bank holding company for First Federal Savings Bank that provides various banking and financial advisory services. The company offers checking accounts, savings accounts, retirement accounts, health savings accounts, and direct deposits, as well as certificates of deposit. It also provides mortgage, refinance, new construction, and home equity loans; auto, recreational vehicle, and unsecured loans; and revolving lines of credit, term loans, real estate loans, letter of credit, and small business administration loans, as well as debit and credit cards. In addition, the company offers merchant, online banking, and cash management services. It operates through full-service locations in Huntington, Warsaw, and Fort Wayne, Indiana. The company was founded in 1912 and is headquartered in Huntington, Indiana.

About Riverview Bancorp

Riverview Bancorp, Inc. operates as a bank holding company for Riverview Bank that provides commercial banking services to small and medium size businesses, professionals, and wealth building individuals. It offers a range of deposit products, including demand deposits, negotiable order of withdrawal accounts, money market accounts, savings accounts, certificates of deposit, and retirement savings plans. The company also provides commercial business, commercial and residential real estate, multi-family real estate, land, real estate construction, and one-to-four family mortgage loans; other consumer loans, such as automobile, boat, motorcycle, recreational vehicle, savings account, and unsecured loans; and home equity lines of credit. In addition, it is involved in the provision of mortgage brokerage and mortgage loan servicing activities, as well as offers asset management services comprising trust, estate planning, and investment management. The company operates in Camas, Washougal, Stevenson, White Salmon, Battle Ground, Goldendale, Ridgefield, and Vancouver, Washington, as well as Portland, Gresham, Tualatin, and Aumsville, Oregon. Riverview Bancorp, Inc. was founded in 1923 and is based in Vancouver, Washington.