Financial Survey: Red River Bancshares (NASDAQ:RRBI) vs. Parke Bancorp (NASDAQ:PKBK)

Parke Bancorp (NASDAQ:PKBK) and Red River Bancshares (NASDAQ:RRBI) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.

Earnings and Valuation

This table compares Parke Bancorp and Red River Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Parke Bancorp	$146.08 million	2.65	$37.78 million	$3.84	8.56
Red River Bancshares	$169.85 million	4.01	$42.76 million	$6.95	14.88

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

Profitability

This table compares Parke Bancorp and Red River Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Parke Bancorp	29.99%	13.88%	2.05%
Red River Bancshares	26.25%	12.47%	1.39%

Volatility and Risk

Parke Bancorp has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, Red River Bancshares has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.

Dividends

Parke Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.4%. Red River Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 1.0%. Parke Bancorp pays out 20.8% of its earnings in the form of a dividend. Red River Bancshares pays out 14.4% 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. Red River Bancshares has raised its dividend for 3 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Parke Bancorp and Red River Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Parke Bancorp	0	0	1	0	3.00
Red River Bancshares	0	3	1	0	2.25

Red River Bancshares has a consensus price target of $106.00, suggesting a potential upside of 2.50%. Given Red River Bancshares’ higher possible upside, analysts clearly believe Red River Bancshares is more favorable than Parke Bancorp.

Insider & Institutional Ownership

49.7% of Parke Bancorp shares are held by institutional investors. Comparatively, 27.6% of Red River Bancshares shares are held by institutional investors. 13.0% of Parke Bancorp shares are held by company insiders. Comparatively, 16.6% of Red River Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Red River Bancshares beats Parke Bancorp on 9 of the 16 factors compared between the two stocks.

About Parke Bancorp

Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company offers various deposit products, including checking, savings, time, money market, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans. In addition, the company provides debit cards, internet banking, and online bill payment services. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.

About Red River Bancshares

Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit. In addition, the company provides treasury management, private banking, and brokerage; investment advisory, financial planning, and a suite of retirement plans; debit and credit cards, direct deposits, cashier's checks, and wire transfer services; online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and banking services in person, through ATMs, drive-through facilities, night deposits, telephone, mail, mobile banking, and remote deposits. Red River Bancshares, Inc. was incorporated in 1998 and is headquartered in Alexandria, Louisiana.