Head-To-Head Analysis: Truist Financial (NYSE:TFC) versus Richmond Mutual Bancorporation (NASDAQ:RMBI)

Richmond Mutual Bancorporation (NASDAQ:RMBI) and Truist Financial (NYSE:TFC) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Dividends

Richmond Mutual Bancorporation pays an annual dividend of $0.60 per share and has a dividend yield of 3.8%. Truist Financial pays an annual dividend of $2.08 per share and has a dividend yield of 4.1%. Richmond Mutual Bancorporation pays out 49.6% of its earnings in the form of a dividend. Truist Financial pays out 47.7% 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 increased its dividend for 1 consecutive years. Truist Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Richmond Mutual Bancorporation has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, Truist Financial has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Valuation and Earnings

This table compares Richmond Mutual Bancorporation and Truist Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Richmond Mutual Bancorporation	$90.97 million	2.92	$11.58 million	$1.21	13.08
Truist Financial	$30.44 billion	2.03	$5.31 billion	$4.36	11.58

Truist Financial has higher revenue and earnings than Richmond Mutual Bancorporation. Truist Financial 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.

Insider and Institutional Ownership

26.5% of Richmond Mutual Bancorporation shares are held by institutional investors. Comparatively, 71.3% of Truist Financial shares are held by institutional investors. 8.2% of Richmond Mutual Bancorporation shares are held by company insiders. Comparatively, 0.2% of Truist Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Richmond Mutual Bancorporation and Truist Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Richmond Mutual Bancorporation	13.00%	8.30%	0.79%
Truist Financial	19.13%	10.06%	1.09%

Analyst Recommendations

This is a summary of current recommendations and price targets for Richmond Mutual Bancorporation and Truist Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Richmond Mutual Bancorporation	0	0	0	1	4.00
Truist Financial	2	8	7	0	2.29

Truist Financial has a consensus price target of $55.12, indicating a potential upside of 9.19%. Given Truist Financial’s higher probable upside, analysts clearly believe Truist Financial is more favorable than Richmond Mutual Bancorporation.

Summary

Truist Financial beats Richmond Mutual Bancorporation on 12 of the 18 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 Truist Financial

Truist Financial Corporation, a financial services company, provides banking and trust services in the Southeastern and Mid-Atlantic United States. The company operates through three segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Insurance Holdings.Its deposit products include noninterest-bearing checking, interest-bearing checking, savings, and money market deposit accounts, as well as certificates of deposit and individual retirement accounts. The company also provides funding; asset management; automobile lending; credit card lending; consumer finance; home equity and mortgage lending; other direct retail lending; insurance; investment brokerage; mobile/online banking; payment solutions; point-of-sale lending; retail and small business deposit products; small business lending; and wealth management/private banking services. In addition, it offers asset based lending, investment banking and capital market, institutional trust, insurance premium finance, derivatives, commercial lending, international banking, leasing, merchant, commercial deposit and treasury, floor plan, mortgage warehouse lending, real estate lending, and supply chain financing services. Further, the company provides insurance brokerage, retail and wholesale brokerage, securities underwriting and market making, loan syndication, and investment management and advisory services. The company was formerly known as BB&T Corporation and changed its name to Truist Financial Corporation in December 2019. Truist Financial Corporation was founded in 1872 and is headquartered in Charlotte, North Carolina.