Riverview Bancorp (NASDAQ: RVSB) and Provident Financial (NASDAQ:PROV) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.
This table compares Riverview Bancorp and Provident Financial’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Riverview Bancorp pays an annual dividend of $0.12 per share and has a dividend yield of 1.4%. Provident Financial pays an annual dividend of $0.56 per share and has a dividend yield of 3.1%. Riverview Bancorp pays out 22.6% of its earnings in the form of a dividend. Provident Financial pays out 87.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation & Earnings
This table compares Riverview Bancorp and Provident Financial’s gross revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Riverview Bancorp has higher earnings, but lower revenue than Provident Financial. Riverview Bancorp is trading at a lower price-to-earnings ratio than Provident Financial, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Riverview Bancorp has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, Provident Financial has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500.
Insider & Institutional Ownership
60.9% of Riverview Bancorp shares are owned by institutional investors. Comparatively, 60.2% of Provident Financial shares are owned by institutional investors. 7.4% of Riverview Bancorp shares are owned by company insiders. Comparatively, 12.7% of Provident Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This is a breakdown of current ratings for Riverview Bancorp and Provident Financial, as reported by MarketBeat.
||Strong Buy Ratings
Riverview Bancorp currently has a consensus price target of $10.50, suggesting a potential upside of 24.41%. Provident Financial has a consensus price target of $19.50, suggesting a potential upside of 6.62%. Given Riverview Bancorp’s stronger consensus rating and higher possible upside, research analysts clearly believe Riverview Bancorp is more favorable than Provident Financial.
Riverview Bancorp beats Provident Financial on 11 of the 16 factors compared between the two stocks.
Riverview Bancorp Company Profile
Riverview Bancorp, Inc. operates as the holding company for Riverview Community Bank that provides community banking services in the United States. It offers a range of deposit products, including demand deposits, negotiable order of withdrawal accounts, money market accounts, regular savings accounts, certificates of deposit, and retirement savings plans. The company also provides commercial business, commercial real estate, other real estate mortgage, and real estate construction loans; and consumer loans, such as one-to-four family mortgage loans, home equity lines of credit, land loans, and other secured and unsecured consumer loans. 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 services. The company operates through a network of 19 branches in rural and suburban communities in southwest Washington State, as well as Multnomah, Washington, and Marion counties of Oregon. Riverview Bancorp, Inc. was founded in 1923 and is based in Vancouver, Washington.
Provident Financial Company Profile
Provident Financial Holdings, Inc. operates as the holding company for Provident Savings Bank, F.S.B. that provides community and mortgage banking services to consumers and small to mid-sized businesses in the Inland Empire region of Southern California. It operates through two segments, Provident Bank and Provident Bank Mortgage. The company's deposit products include non-interest-bearing and interest-bearing checking accounts, savings accounts, money market accounts, and time deposits; and loan portfolio comprises single-family, multi-family, commercial real estate, construction, commercial business, consumer, and other mortgage loans. It also originates, purchases, and sells single-family mortgage loans, including second mortgages and equity lines of credit. In addition, the company offers investment services comprising the sale of investment products, such as annuities and mutual funds, as well as trustee services for real estate transactions. It operates 13 full-service banking offices in Riverside County and 1 full-service banking office in San Bernardino County. The company was founded in 1956 and is headquartered in Riverside, California.
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