Limestone Bancorp (NASDAQ:LMST) and Riverview Financial (NASDAQ:RIVE) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Limestone Bancorp 18.95% 10.70% 0.96%
Riverview Financial 6.50% 5.75% 0.59%

Insider and Institutional Ownership

36.7% of Limestone Bancorp shares are held by institutional investors. Comparatively, 20.2% of Riverview Financial shares are held by institutional investors. 17.0% of Limestone Bancorp shares are held by insiders. Comparatively, 4.4% of Riverview Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Limestone Bancorp has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, Riverview Financial has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Limestone Bancorp and Riverview Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Limestone Bancorp 0 1 1 0 2.50
Riverview Financial 0 0 0 0 N/A

Limestone Bancorp currently has a consensus target price of $18.00, suggesting a potential upside of 5.88%. Given Limestone Bancorp’s higher probable upside, equities research analysts plainly believe Limestone Bancorp is more favorable than Riverview Financial.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Limestone Bancorp $55.50 million 1.91 $10.52 million $1.44 11.81
Riverview Financial $60.73 million 1.85 $10.86 million N/A N/A

Riverview Financial has higher revenue and earnings than Limestone Bancorp.

Summary

Limestone Bancorp beats Riverview Financial on 8 of the 12 factors compared between the two stocks.

About Limestone Bancorp

Limestone Bancorp, Inc. operates as the bank holding company for Limestone Bank, Inc. that provides a range of commercial and personal banking products and services. The company offers deposit products, including checking, savings, and term certificate accounts, as well as money market accounts and fixed rate certificates. It also provides commercial loans for equipment purchases, working capital, and other financing needs of business enterprises; and commercial real estate loans that include loans on properties occupied by borrowers and tenants, as well as construction and development loans secured by land under development, or homes and commercial buildings under construction. In addition, the company offers residential real estate loans; consumer loans; agriculture loans secured by livestock, crops, and equipment; and other loans, including loans to municipalities, loans secured by stock, and overdrafts. Further, it provides drive-through banking facilities, automatic teller machines, personalized checks, credit and debit cards, electronic funds transfers through ACH services, domestic and foreign wire transfers, and loan and deposit sweep accounts; and night depository, Internet and mobile banking, treasury management, remote deposit, cash management, and vault services. The company primarily serves small to medium-sized businesses, and business owners and employees, as well as other executives and professionals. It operates 15 banking offices in 12 counties in Kentucky. The company was formerly known as Porter Bancorp, Inc. and changed its name to Limestone Bancorp, Inc. in May 2018. Limestone Bancorp, Inc. was founded in 1902 and is headquartered in Louisville, Kentucky.

About Riverview Financial

Riverview Financial Corporation operates as the bank holding company for Riverview Bank that provides various consumer and commercial banking products and services to individuals, municipalities, small to medium sized businesses, and nonprofit entities in the United States. It accepts money market, NOW, savings, individual retirement, and investment accounts; demand and time deposits, certificates of deposit, and noninterest bearing deposits; and provides remote deposit capture, automatic clearing house transaction, cash management, automated teller machine, point of sale transaction, night depository, direct deposit, and official check services, as well as safe deposit boxes. It offers one-to-four family residential mortgages, consumer, automobile, home equity, educational, lines of credit, residential and commercial real estate, manufactured housing, personal, student, home equity, working capital, construction, and agricultural loans; and loans for equipment and other commercial needs, and mineral rights. In addition, it provides mortgage banking and financial advisory services; and trust and investment services comprising investment management, IRA trustee, estate administration, living trust, trustee under will, guardianship, life insurance trust, custodial/IRA custodial, and corporate trust services, as well as pension and profit sharing plans. Further, it offers wealth management products and services, such as investment portfolio management, brokerage, annuities, business succession planning, insurance, education funding strategies, and estate and tax planning assistance; and securities, stocks, bonds, and mutual funds. As of March 18, 2019, it operated through 28 community banking offices and 4 limited purpose offices in the Berks, Blair, Centre, Clearfield, Dauphin, Huntingdon, Lebanon, Lycoming, Northumberland, Perry, Schuylkill, and Somerset counties of Pennsylvania. The company was founded in 1900 and is headquartered in Harrisburg, Pennsylvania.

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