Riverview Financial (NASDAQ:RIVE) and Simmons First National (NASDAQ:SFNC) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings for Riverview Financial and Simmons First National, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Riverview Financial 0 0 0 0 N/A
Simmons First National 0 3 2 0 2.40

Simmons First National has a consensus target price of $28.80, indicating a potential upside of 20.10%. Given Simmons First National’s higher probable upside, analysts plainly believe Simmons First National is more favorable than Riverview Financial.

Valuation & Earnings

This table compares Riverview Financial and Simmons First National’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Riverview Financial $60.73 million 1.89 $10.86 million N/A N/A
Simmons First National $988.15 million 2.35 $237.84 million $2.73 8.78

Simmons First National has higher revenue and earnings than Riverview Financial.

Dividends

Riverview Financial pays an annual dividend of $0.30 per share and has a dividend yield of 2.4%. Simmons First National pays an annual dividend of $0.64 per share and has a dividend yield of 2.7%. Simmons First National pays out 23.4% of its earnings in the form of a dividend. Riverview Financial has increased its dividend for 1 consecutive years and Simmons First National has increased its dividend for 8 consecutive years. Simmons First National is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

20.2% of Riverview Financial shares are held by institutional investors. Comparatively, 20.9% of Simmons First National shares are held by institutional investors. 4.4% of Riverview Financial shares are held by insiders. Comparatively, 2.0% of Simmons First National shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Riverview Financial has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Simmons First National has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Profitability

This table compares Riverview Financial and Simmons First National’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Riverview Financial 6.50% 5.75% 0.59%
Simmons First National 24.10% 10.48% 1.48%

Summary

Simmons First National beats Riverview Financial on 12 of the 15 factors compared between the two stocks.

Riverview Financial Company Profile

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.

Simmons First National Company Profile

Simmons First National Corporation operates as the holding company for Simmons Bank that provides financial products and services to individuals and businesses. It offers checking, savings, and time deposits; loan products, including consumer, real estate, commercial, agricultural, equipment, and SBA lending; personal and corporate trust services; credit cards; investment management products; insurance products; and securities and investment services. The company conducts banking operations through approximately 191 financial centers located in communities throughout Arkansas, Colorado, Kansas, Missouri, Oklahoma, Tennessee, and Texas. Simmons First National Corporation was founded in 1903 and is headquartered in Pine Bluff, Arkansas.

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