Reviewing Rhinebeck Bancorp (NASDAQ:RBKB) and Park National (NYSE:PRK)

Park National (NYSE:PRK) and Rhinebeck Bancorp (NASDAQ:RBKB) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Profitability

This table compares Park National and Rhinebeck Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Park National	23.46%	12.31%	1.50%
Rhinebeck Bancorp	12.99%	7.20%	0.73%

Insider & Institutional Ownership

62.7% of Park National shares are owned by institutional investors. Comparatively, 23.9% of Rhinebeck Bancorp shares are owned by institutional investors. 2.2% of Park National shares are owned by company insiders. Comparatively, 3.0% of Rhinebeck Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Park National and Rhinebeck Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Park National	$623.80 million	5.26	$151.42 million	$11.17	16.26
Rhinebeck Bancorp	$75.84 million	2.65	$10.05 million	$0.71	18.07

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Park National and Rhinebeck Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Park National	0	5	0	0	2.00
Rhinebeck Bancorp	0	0	1	0	3.00

Park National presently has a consensus target price of $200.50, suggesting a potential upside of 10.36%. Given Park National’s higher probable upside, equities research analysts clearly believe Park National is more favorable than Rhinebeck Bancorp.

Risk and Volatility

Park National has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Rhinebeck Bancorp has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500.

Summary

Park National beats Rhinebeck Bancorp on 11 of the 14 factors compared between the two stocks.

About Park National

Park National Corporation operates as the bank holding company for Park National Bank that provides commercial banking and trust services in small and medium population areas. The company offers deposits for demand, savings, and time accounts; trust and wealth management services; cash management services; safe deposit operations; electronic funds transfers; Internet and mobile banking solutions with bill pay service; credit cards; and various additional banking-related services. It also provides commercial loans, including financing for industrial and commercial properties, financing for equipment, inventory and accounts receivable, acquisition financing, and commercial leasing, as well as for consumer finance companies; commercial real estate loans comprising mortgage loans to developers and owners of commercial real estate; originates financing leases primarily for the purchase of commercial vehicles, operating/manufacturing equipment, and municipal vehicles/equipment; consumer loans, such as automobile loans; consumer finance services; home equity lines of credit; and residential real estate and construction loans, as well as installment loans and commercial loans. In addition, the company offers aircraft financing services; and ParkDirect, a personal banking application. Park National Corporation was founded in 1908 and is headquartered in Newark, Ohio.

About Rhinebeck Bancorp

Rhinebeck Bancorp, Inc. operates as the bank holding company for Rhinebeck Bank that provides banking and financial products and services to consumer and commercial customers in the Hudson Valley region of New York. The company offers deposits, including non-interest-bearing demand, interest bearing demand, money market, commercial and personal checking, individual retirement, and saving accounts, as well as certificates of deposit. It also provides direct and indirect automobile loans; non-residential commercial real estate loans; commercial business loans, such as term loans, revolving lines of credit, and lines of credit; residential mortgage and construction, one- to four-family residential real estate, multi-family real estate, commercial construction, and land development loans; and other consumer loans consist of home equity loans and lines of credit. In addition, the company offers retail brokerage and advisory services; life insurance services; and invests in mutual funds, annuities, and other assets. Rhinebeck Bancorp, Inc. was founded in 1860 and is headquartered in Poughkeepsie, New York. Rhinebeck Bancorp, Inc. is a subsidiary of Rhinebeck Bancorp, MHC.