Randolph Bancorp (NASDAQ:RNDB) and MutualFirst Financial (NASDAQ:MFSF) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.

Dividends

MutualFirst Financial pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. Randolph Bancorp does not pay a dividend. MutualFirst Financial pays out 41.9% of its earnings in the form of a dividend. MutualFirst Financial has raised its dividend for 5 consecutive years.

Institutional & Insider Ownership

34.5% of Randolph Bancorp shares are held by institutional investors. Comparatively, 47.2% of MutualFirst Financial shares are held by institutional investors. 7.7% of Randolph Bancorp shares are held by company insiders. Comparatively, 28.0% of MutualFirst Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Randolph Bancorp has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, MutualFirst Financial has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Randolph Bancorp and MutualFirst Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Randolph Bancorp 1 0 0 0 1.00
MutualFirst Financial 0 1 0 0 2.00

Earnings and Valuation

This table compares Randolph Bancorp and MutualFirst Financial’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Randolph Bancorp $29.90 million 2.76 -$2.12 million N/A N/A
MutualFirst Financial $76.94 million 3.10 $12.31 million $1.91 14.56

MutualFirst Financial has higher revenue and earnings than Randolph Bancorp.

Profitability

This table compares Randolph Bancorp and MutualFirst Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Randolph Bancorp -11.21% -375.23% -53.70%
MutualFirst Financial 16.27% 10.34% 0.99%

Summary

MutualFirst Financial beats Randolph Bancorp on 12 of the 13 factors compared between the two stocks.

About Randolph Bancorp

Randolph Bancorp, Inc. operates as the bank holding company for Envision Bank that provides financial services to individuals, families, and small to mid-size businesses in Massachusetts, Rhode Island, and southern New Hampshire. The company accepts checking, NOW, money market, and savings accounts, as well as certificate of deposits and IRAs. It also offers one- to four-family residential mortgage, commercial real estate, commercial and industrial, construction, and consumer loans; home equity loans and lines of credit; and investment securities. In addition, the company provides remote deposit capture products for business customers to meet their online banking needs. As of February 27, 2018, it operated six retail branch locations and loan operations centers in Andover and North Attleboro, Massachusetts; and five loan production offices in eastern Massachusetts. The company was founded in 1851 and is based in Stoughton, Massachusetts. Randolph Bancorp, Inc. is a subsidiary of Randolph Bancorp (MHC).

About MutualFirst Financial

MutualFirst Financial, Inc. operates as the bank holding company for MutualBank that provides various financial services in the United States. It accepts savings deposit, NOW, and demand accounts, as well as certificates of deposit. The company offers one-to four-family residential property, commercial real estate, construction and development, and commercial business loans; consumer loans, such as auto loans, boat and recreational vehicle loans, loans secured by savings deposits, and credit card and unsecured consumer loans; and adjustable rate loans. In addition, it operates as an insurance agent; and sells life and other insurance products. Further, the company provides trust, investment, broker advisory, retirement plan, and private banking products and services. It has 27 full service retail financial centers in Allen, Delaware, Elkhart, Grant, Kosciusko, Randolph, St. Joseph, and Wabash counties in Indiana; and wealth management offices in Fishers and Crawfordsville, Indiana; and 1 loan origination office in New Buffalo, Michigan. MutualFirst Financial, Inc. was founded in 1889 and is headquartered in Muncie, Indiana.

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