Guaranty Federal Bancshares (NASDAQ:GFED) and Red River Bancshares (NASDAQ:RRBI) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.
This is a summary of recent ratings and price targets for Guaranty Federal Bancshares and Red River Bancshares, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Guaranty Federal Bancshares||0||0||1||0||3.00|
|Red River Bancshares||0||1||1||0||2.50|
Guaranty Federal Bancshares currently has a consensus price target of $28.00, suggesting a potential upside of 20.17%. Red River Bancshares has a consensus price target of $57.00, suggesting a potential upside of 17.55%. Given Guaranty Federal Bancshares’ stronger consensus rating and higher probable upside, research analysts clearly believe Guaranty Federal Bancshares is more favorable than Red River Bancshares.
This table compares Guaranty Federal Bancshares and Red River Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Guaranty Federal Bancshares||15.22%||13.07%||1.07%|
|Red River Bancshares||N/A||N/A||N/A|
Earnings & Valuation
This table compares Guaranty Federal Bancshares and Red River Bancshares’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Guaranty Federal Bancshares||$49.80 million||2.10||$7.33 million||$2.18||10.69|
|Red River Bancshares||N/A||N/A||N/A||N/A||N/A|
Guaranty Federal Bancshares has higher revenue and earnings than Red River Bancshares.
Guaranty Federal Bancshares pays an annual dividend of $0.52 per share and has a dividend yield of 2.2%. Red River Bancshares does not pay a dividend. Guaranty Federal Bancshares pays out 23.9% of its earnings in the form of a dividend. Guaranty Federal Bancshares has raised its dividend for 4 consecutive years.
Institutional & Insider Ownership
27.8% of Guaranty Federal Bancshares shares are held by institutional investors. 29.5% of Guaranty Federal Bancshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Guaranty Federal Bancshares beats Red River Bancshares on 10 of the 11 factors compared between the two stocks.
About Guaranty Federal Bancshares
Guaranty Federal Bancshares, Inc. operates as the bank holding company for Guaranty Bank that provides a range of banking and mortgage services to individual and corporate customers in southwest Missouri. The company's deposit products include checking accounts, money market accounts, savings accounts, fixed-term certificates of deposit, and individual retirement accounts, as well as demand deposits and NOW accounts. Its loan portfolio comprises commercial real estate loans, one-to four-family mortgage loans, multi-family residential mortgage loans, and construction loans; and consumer and other loans, such as loans secured by certificates of deposit, automobile loans, boat loans, and home equity loans, as well as business loans. As of January 23, 2019, the company had 16 full-service branches in Greene, Christian, Jasper, and Newton Counties and a loan production office in Webster County. Guaranty Federal Bancshares, Inc. was founded in 1913 and is based in Springfield, Missouri.
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 businesses, professionals, individuals, and public entities in Louisiana. It provides consumer checking accounts, money market accounts, and time deposits; real estate loans, commercial loans, treasury management services; and private banking services, residential mortgage lending, and investment services. The company operates a network of 23 banking centers, as well as 1 loan production office in Covington, Louisiana. Red River Bancshares, Inc. was founded in 1998 and is headquartered in Alexandria, Louisiana.
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