Northrim BanCorp (NRIM) and Riverview Bancorp (RVSB) Critical Survey

Northrim BanCorp (NASDAQ: NRIM) and Riverview Bancorp (NASDAQ:RVSB) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Risk & Volatility

Northrim BanCorp has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Riverview Bancorp has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500.

Earnings & Valuation

This table compares Northrim BanCorp and Riverview Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Northrim BanCorp $100.58 million 2.70 $13.15 million $2.04 19.39
Riverview Bancorp $55.96 million 3.40 $10.24 million $0.53 15.92

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

Dividends

Northrim BanCorp pays an annual dividend of $0.96 per share and has a dividend yield of 2.4%. Riverview Bancorp pays an annual dividend of $0.12 per share and has a dividend yield of 1.4%. Northrim BanCorp pays out 47.1% of its earnings in the form of a dividend. Riverview Bancorp pays out 22.6% 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.

Profitability

This table compares Northrim BanCorp and Riverview Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Northrim BanCorp 13.47% 8.45% 1.08%
Riverview Bancorp 18.30% 10.37% 1.06%

Insider and Institutional Ownership

70.5% of Northrim BanCorp shares are held by institutional investors. Comparatively, 59.8% of Riverview Bancorp shares are held by institutional investors. 2.9% of Northrim BanCorp shares are held by insiders. Comparatively, 7.0% of Riverview Bancorp 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.

Analyst Recommendations

This is a summary of recent ratings and target prices for Northrim BanCorp and Riverview Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northrim BanCorp 0 0 0 0 N/A
Riverview Bancorp 0 0 1 0 3.00

Riverview Bancorp has a consensus target price of $10.50, suggesting a potential upside of 24.41%. Given Riverview Bancorp’s higher probable upside, analysts clearly believe Riverview Bancorp is more favorable than Northrim BanCorp.

Summary

Northrim BanCorp beats Riverview Bancorp on 8 of the 15 factors compared between the two stocks.

About Northrim BanCorp

Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professionals in Alaska. The company operates in two segments, Community Banking and Home Mortgage Lending. It offers various deposit products, including noninterest-bearing checking accounts and interest-bearing time deposits, checking accounts, and savings accounts, as well as money market deposit accounts, certificates of deposit, and courier noncash deposits. The company also provides family residential mortgages; commercial loans, such as secured and unsecured loans for working capital and expansion; commercial real estate loans; construction loans for commercial real estate projects, and land development and residential subdivision construction loans; and consumer loans comprising loans for automobiles, recreational vehicles, boats, and other consumer purchases, as well as home equity and commercial credit lines, and factoring services. In addition, it offers other services comprising consumer online banking, mobile app and mobile deposit, mobile Web and text banking, business online banking, personal finance, online documents, consumer and business debit cards, personalized checks at account opening, telebanking, automated teller, overdraft protection from a savings account, commercial drive-up banking, automatic transfers and payments, wire transfers, direct payroll deposit, electronic tax payments, automated clearing house origination and receipt, remote deposit capture, merchant, and cash management services, as well as annuity products, and long term investment portfolios. As of January 29, 2018, the company operated 14 branches in Anchorage, the Matanuska Valley, Juneau, Fairbanks, Ketchikan, and Sitka. Northrim BanCorp, Inc. was founded in 1990 and is headquartered in Anchorage, Alaska.

About Riverview Bancorp

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.

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