Reviewing First Bancorp, Inc (ME) (NASDAQ:FNLC) & Richmond Mutual Bancorporation (NASDAQ:RMBI)

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Richmond Mutual Bancorporation and First Bancorp, Inc (ME), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Richmond Mutual Bancorporation	0	0	1	0	3.00
First Bancorp, Inc (ME)	0	0	1	0	3.00

Dividends

Richmond Mutual Bancorporation pays an annual dividend of $0.60 per share and has a dividend yield of 3.8%. First Bancorp, Inc (ME) pays an annual dividend of $1.48 per share and has a dividend yield of 4.2%. Richmond Mutual Bancorporation pays out 48.0% of its earnings in the form of a dividend. First Bancorp, Inc (ME) pays out 45.7% 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. Richmond Mutual Bancorporation has raised its dividend for 1 consecutive years and First Bancorp, Inc (ME) has raised its dividend for 6 consecutive years. First Bancorp, Inc (ME) is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Richmond Mutual Bancorporation and First Bancorp, Inc (ME)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Richmond Mutual Bancorporation	13.56%	8.80%	0.82%
First Bancorp, Inc (ME)	20.34%	13.09%	1.14%

Volatility & Risk

Richmond Mutual Bancorporation has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, First Bancorp, Inc (ME) has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.

Valuation & Earnings

This table compares Richmond Mutual Bancorporation and First Bancorp, Inc (ME)”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Richmond Mutual Bancorporation	$90.97 million	1.80	$11.58 million	$1.25	12.47
First Bancorp, Inc (ME)	$177.61 million	2.26	$34.39 million	$3.24	10.97

First Bancorp, Inc (ME) has higher revenue and earnings than Richmond Mutual Bancorporation. First Bancorp, Inc (ME) 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.

Institutional & Insider Ownership

26.5% of Richmond Mutual Bancorporation shares are held by institutional investors. Comparatively, 40.4% of First Bancorp, Inc (ME) shares are held by institutional investors. 8.2% of Richmond Mutual Bancorporation shares are held by insiders. Comparatively, 5.1% of First Bancorp, Inc (ME) shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

First Bancorp, Inc (ME) beats Richmond Mutual Bancorporation on 12 of the 14 factors compared between the two stocks.

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.

About First Bancorp, Inc (ME)

The First Bancorp, Inc. operates as the holding company for First National Bank that provides a range of banking products and services to individuals and businesses. It offers various deposit products, including demand, NOW, time, savings, money market, and certificates of deposit accounts. The company also provides commercial loans comprising commercial real estate owner occupied, such as mortgage loans to finance investments in real property such as retail space, offices, industrial buildings, hotels, educational facilities, and other specific or mixed use properties; commercial real estate non-owner occupied loans; commercial construction to finance construction in a mix of owner- and nonowner occupied commercial real estate properties; and commercial and industrial loans, including revolving and term loan for financing working capital and/or capital investment. In addition, it offers commercial multifamily loans; residential real estate term and residential real estate construction loans; loans to municipalities in Maine for capitalized expenditures, construction projects, or tax anticipation notes; home equity revolving and term loans; and personal lines of credit and amortizing loans for various purposes, such as autos, recreational vehicles, debt consolidation, personal expenses, or overdraft protection. Further, the company offers private banking, financial planning, investment management, and trust services to individuals, businesses, non-profit organizations and municipalities; and brokerage, annuity, and various insurance products, as well as payment processing services. It operates through full-service banking offices in Lincoln, Knox, Waldo, Penobscot, Hancock, and Washington counties in the Mid-Coast, Eastern, and Down East regions of Maine. The company was formerly known as First National Lincoln Corporation and changed its name to The First Bancorp, Inc. in April 2008. The First Bancorp, Inc. was founded in 1864 and is based in Damariscotta, Maine.