Contrasting Red River Bancshares (NASDAQ:RRBI) & First Horizon (NYSE:FHN)

First Horizon (NYSE:FHN) and Red River Bancshares (NASDAQ:RRBI) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Risk and Volatility

First Horizon has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Red River Bancshares has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.

Earnings and Valuation

This table compares First Horizon and Red River Bancshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Horizon	$5.03 billion	2.23	$775.00 million	$1.65	13.81
Red River Bancshares	$157.67 million	2.94	$34.24 million	$6.03	11.70

First Horizon has higher revenue and earnings than Red River Bancshares. Red River Bancshares is trading at a lower price-to-earnings ratio than First Horizon, indicating that it is currently the more affordable of the two stocks.

Dividends

First Horizon pays an annual dividend of $0.60 per share and has a dividend yield of 2.6%. Red River Bancshares pays an annual dividend of $0.60 per share and has a dividend yield of 0.9%. First Horizon pays out 36.4% of its earnings in the form of a dividend. Red River Bancshares pays out 10.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Red River Bancshares has increased its dividend for 3 consecutive years.

Insider and Institutional Ownership

80.3% of First Horizon shares are held by institutional investors. Comparatively, 27.6% of Red River Bancshares shares are held by institutional investors. 0.9% of First Horizon shares are held by company insiders. Comparatively, 15.9% of Red River Bancshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares First Horizon and Red River Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Horizon	18.08%	10.93%	1.16%
Red River Bancshares	24.44%	12.14%	1.28%

Analyst Recommendations

This is a summary of current ratings for First Horizon and Red River Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Horizon	0	8	10	1	2.63
Red River Bancshares	0	1	2	0	2.67

First Horizon currently has a consensus target price of $24.50, suggesting a potential upside of 7.55%. Red River Bancshares has a consensus target price of $67.00, suggesting a potential downside of 5.02%. Given First Horizon’s higher possible upside, equities research analysts clearly believe First Horizon is more favorable than Red River Bancshares.

About First Horizon

First Horizon Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. The company operates through Regional Banking and Specialty Banking segments. It offers general banking services for consumers, businesses, financial institutions, and governments. The company also accepts deposits; provides underwriting services for bank-eligible securities and other fixed-income securities by financial subsidiaries; sells loans and derivatives; financial planning; and offers investment and financial advisory services. In addition, it offers mortgage banking; loan syndications; brokerage services; commercial and business banking for business enterprises, consumer banking, and private client and wealth management services; capital markets, professional commercial real estate, mortgage warehouse and asset-based lending, franchise and equipment finance, tax credit finance, energy and healthcare finance, asset management, and corporate and correspondent banking services. Further, the company provides transaction processing services including check clearing services and remittance processing, credit cards, investment, and sale of mutual fund and retail insurances, as well as trust, fiduciary, and agency services. First Horizon Corporation was founded in 1864 and is headquartered in Memphis, Tennessee.

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.