Critical Survey: Riverview Financial (NASDAQ:RIVE) vs. Sterling Bancorp (NASDAQ:STL)

Riverview Financial (NASDAQ:RIVE) and Sterling Bancorp (NYSE:STL) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Riverview Financial and Sterling Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Riverview Financial 0 0 0 0 N/A
Sterling Bancorp 0 0 8 0 3.00

Sterling Bancorp has a consensus target price of $25.14, suggesting a potential upside of 23.61%. Given Sterling Bancorp’s higher probable upside, analysts clearly believe Sterling Bancorp is more favorable than Riverview Financial.

Dividends

Riverview Financial pays an annual dividend of $0.40 per share and has a dividend yield of 3.7%. Sterling Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. Sterling Bancorp pays out 14.0% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Riverview Financial 7.24% 6.34% 0.63%
Sterling Bancorp 32.55% 10.37% 1.45%

Institutional and Insider Ownership

19.7% of Riverview Financial shares are held by institutional investors. Comparatively, 93.8% of Sterling Bancorp shares are held by institutional investors. 4.4% of Riverview Financial shares are held by company insiders. Comparatively, 1.7% of Sterling Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Riverview Financial and Sterling Bancorp’s top-line 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 1.62 $10.86 million N/A N/A
Sterling Bancorp $1.31 billion 3.25 $447.25 million $2.00 10.17

Sterling Bancorp has higher revenue and earnings than Riverview Financial.

Summary

Sterling Bancorp beats Riverview Financial on 9 of the 13 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.

Sterling Bancorp Company Profile

Sterling Bancorp operates as the bank holding company for Sterling National Bank that provides various banking products and services to commercial, consumer, and municipal clients in the United States. The company accepts deposit products, including checking, savings, money market, time, and interest and non-interest bearing demand deposits, as well as certificates of deposit and mortgage escrow funds. It originates various loans that comprise residential and commercial mortgage loans; commercial and industrial, asset-based, payroll finance, warehouse, factored receivables, equipment finance, public sector, and commercial real estate and multi-family loans; consumer loans, such as homeowner loans, home equity lines of credit, new and used automobile loans, and personal unsecured loans; and acquisition, development, and construction loans. In addition, the company engages in the third-party provider to sell mutual funds and annuities; and provision of annuity and wealth management products. As of December 31, 2018, it operated 106 full-service retail and commercial financial centers, which comprise 24 offices are located in Nassau County, 22 in Suffolk County, 14 in Queens County, 12 in Westchester County, 11 in Kings County, 8 in Rockland County, 6 in Orange County, 3 in New York City, and 2 in Bronx County, as well as 1 office each in Sullivan, Ulster, and Putnam Counties in New York; and 1 office in Bergen County, New Jersey. The company was founded in 1888 and is based in Montebello, New York.

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