Ames National (NASDAQ:ATLO) and Old National Bancorp (NASDAQ:ONB) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, dividends, risk and earnings.
Valuation & Earnings
This table compares Ames National and Old National Bancorp’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ames National||$57.63 million||4.23||$17.01 million||N/A||N/A|
|Old National Bancorp||$827.35 million||3.47||$190.83 million||$1.29||12.78|
Ames National pays an annual dividend of $0.96 per share and has a dividend yield of 3.7%. Old National Bancorp pays an annual dividend of $0.52 per share and has a dividend yield of 3.2%. Old National Bancorp pays out 40.3% of its earnings in the form of a dividend. Ames National has raised its dividend for 3 consecutive years. Ames National is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current recommendations for Ames National and Old National Bancorp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Old National Bancorp||0||6||2||0||2.25|
Old National Bancorp has a consensus price target of $20.20, suggesting a potential upside of 22.57%. Given Old National Bancorp’s higher probable upside, analysts plainly believe Old National Bancorp is more favorable than Ames National.
Volatility and Risk
Ames National has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Old National Bancorp has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.
This table compares Ames National and Old National Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Old National Bancorp||23.07%||8.43%||1.11%|
Institutional and Insider Ownership
23.7% of Ames National shares are held by institutional investors. Comparatively, 63.9% of Old National Bancorp shares are held by institutional investors. 4.8% of Ames National shares are held by company insiders. Comparatively, 1.4% of Old National Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Ames National beats Old National Bancorp on 9 of the 15 factors compared between the two stocks.
Ames National Company Profile
Ames National Corporation operates as a multi-bank holding company that provides banking services primarily in the central, north-central, and south-central Iowa counties of Boone, Clarke, Hancock, Marshall, Polk, and Story. The company offers a range of deposits, including checking, savings, and accounts; and time deposits of various types, including money market accounts and certificates of deposit. It also provides loans, such as short-term and medium-term commercial and agricultural real estate loans, residential real estate loans, equipment loans, vehicle loans, personal loans and lines of credit, and home improvement loans, as well as agricultural and business operating loans and lines of credit; and originates mortgage loans for sale into the secondary market. In addition, the company offers cash management, merchant credit card processing, safe deposit box, wire transfer, direct deposit of payroll and social security check, and automated/video teller machine access services; and automatic drafts for various accounts, as well as trust services comprising wealth management services. Further, it provides farm management, investment, and custodial services for individuals, businesses, and non-profit organizations; and online management, mobile banking, and private banking services. The company was founded in 1903 and is based in Ames, Iowa.
Old National Bancorp Company Profile
Old National Bancorp operates as the holding company for Old National Bank that provides various financial services to individual and commercial customers in the United States. The company offers deposit accounts, including noninterest-bearing demand, interest-bearing checking, NOW, savings and money market, and time deposits; and loans, such as home equity lines of credit, residential real estate loans, consumer loans, commercial loans, commercial real estate loans, letters of credit, and lease financing. It also provides debit and ATM cards, telephone access, and online banking, as well as other electronic and mobile banking services; cash management, private banking, brokerage, trust, and investment advisory services; wealth management, investment, and foreign currency services; and treasury management, merchant, health savings, and capital markets services, as well as community development lending and equity investment solutions. As of December 31, 2018, the company operated 191 banking centers located primarily in Indiana, Kentucky, Michigan, Wisconsin, and Minnesota. Old National Bancorp was founded in 1834 and is headquartered in Evansville, Indiana.
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