First Financial Northwest (NASDAQ:FFNW – Get Free Report) and Red River Bancshares (NASDAQ:RRBI – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
Earnings and Valuation
This table compares First Financial Northwest and Red River Bancshares”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
First Financial Northwest | $38.37 million | 5.16 | $6.30 million | $0.11 | 195.00 |
Red River Bancshares | $106.72 million | 3.46 | $34.88 million | $4.75 | 11.48 |
Red River Bancshares has higher revenue and earnings than First Financial Northwest. Red River Bancshares is trading at a lower price-to-earnings ratio than First Financial Northwest, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Analyst Ratings
This is a breakdown of recent ratings for First Financial Northwest and Red River Bancshares, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
First Financial Northwest | 0 | 3 | 0 | 0 | 2.00 |
Red River Bancshares | 0 | 0 | 0 | 0 | 0.00 |
First Financial Northwest presently has a consensus target price of $23.00, suggesting a potential upside of 7.23%. Given First Financial Northwest’s stronger consensus rating and higher possible upside, research analysts plainly believe First Financial Northwest is more favorable than Red River Bancshares.
Dividends
First Financial Northwest pays an annual dividend of $0.26 per share and has a dividend yield of 1.2%. Red River Bancshares pays an annual dividend of $0.36 per share and has a dividend yield of 0.7%. First Financial Northwest pays out 236.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Red River Bancshares pays out 7.6% of its earnings in the form of a dividend.
Institutional and Insider Ownership
55.0% of First Financial Northwest shares are owned by institutional investors. Comparatively, 27.5% of Red River Bancshares shares are owned by institutional investors. 7.2% of First Financial Northwest shares are owned by insiders. Comparatively, 16.4% of Red River Bancshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares First Financial Northwest and Red River Bancshares’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
First Financial Northwest | 1.31% | 0.66% | 0.07% |
Red River Bancshares | 21.42% | 10.76% | 1.08% |
Summary
Red River Bancshares beats First Financial Northwest on 9 of the 15 factors compared between the two stocks.
About First Financial Northwest
First Financial Northwest, Inc. operates as the bank holding company for First Financial Northwest Bank that provides commercial banking services in Washington. The company offers a range of deposit products, including noninterest-bearing accounts, interest-bearing demand accounts, money market accounts, savings accounts, and certificates of deposit. Its loan products comprise one-to-four family residential loans; multifamily and commercial real estate loans; construction/land loans; business loans; and consumer loans, such as home equity loans, lines of credit, second mortgage term loans, auto loans, and savings account loans. The company also provides wealth management services; and online banking services, as well as debit cards and ATMs. The company was founded in 1923 and is headquartered in Renton, Washington.
About Red River Bancshares
Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit. In addition, the company provides treasury management, private banking, and brokerage; investment advisory, financial planning, and a suite of retirement plans; debit and credit cards, direct deposits, cashier's checks, and wire transfer services; online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and banking services in person, through ATMs, drive-through facilities, night deposits, telephone, mail, mobile banking, and remote deposits. Red River Bancshares, Inc. was incorporated in 1998 and is headquartered in Alexandria, Louisiana.
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