Reviewing First Bancorp of Indiana (OTCMKTS:FBPI) and Riverview Bancorp (NASDAQ:RVSB)

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

Dividends

First Bancorp of Indiana pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. Riverview Bancorp pays an annual dividend of $0.08 per share and has a dividend yield of 1.5%. First Bancorp of Indiana pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Riverview Bancorp pays out 34.8% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and price targets for First Bancorp of Indiana and Riverview Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bancorp of Indiana	0	0	0	0	0.00
Riverview Bancorp	0	2	1	0	2.33

Riverview Bancorp has a consensus price target of $7.00, suggesting a potential upside of 27.74%. Given Riverview Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Riverview Bancorp is more favorable than First Bancorp of Indiana.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Bancorp of Indiana	N/A	N/A	N/A
Riverview Bancorp	6.41%	2.99%	0.32%

Insider and Institutional Ownership

69.6% of Riverview Bancorp shares are owned by institutional investors. 20.0% of First Bancorp of Indiana shares are owned by company insiders. Comparatively, 3.3% of Riverview Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

First Bancorp of Indiana has a beta of 0.12, indicating that its share price is 88% less volatile than the S&P 500. Comparatively, Riverview Bancorp has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bancorp of Indiana	N/A	N/A	N/A	$0.21	64.52
Riverview Bancorp	$73.22 million	1.55	$4.90 million	$0.23	23.83

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

Summary

Riverview Bancorp beats First Bancorp of Indiana on 11 of the 14 factors compared between the two stocks.

About First Bancorp of Indiana

First Bancorp of Indiana, Inc. operates as the bank holding company for First Federal Savings Bank, provides various banking products and services to individuals and business customers in the United States. The company accepts various deposits such as certificates of deposit, checking, health savings, individual retirement, money market, and savings accounts; loans include retail loan advisors, consumer loans, such as auto, motorcycle, boat, and recreational vehicle loans; mortgage and home equity loans; and current rates and secured deposits. It also accepts various business deposit accounts including commercial, business, small business, and community first checking accounts; lending services comprising relationship bankers; commercial real estate, equipment, owner occupied and investment real estate financing, as well as working capital line of credit, business loans, and small business administration. In addition, the company provides treasury management, online banking, merchant services, remote capture, and debit and credit card services. First Bancorp of Indiana, Inc. was founded in 1904 and is headquartered in Evansville, 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.