Ames National (NASDAQ:ATLO) and Fidelity D&D Bancorp (NASDAQ:FDBC) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Institutional & Insider Ownership

23.9% of Ames National shares are held by institutional investors. Comparatively, 10.7% of Fidelity D&D Bancorp shares are held by institutional investors. 8.4% of Ames National shares are held by insiders. Comparatively, 25.6% of Fidelity D&D Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Ames National and Fidelity D&D Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ames National $53.79 million 4.65 $13.69 million N/A N/A
Fidelity D&D Bancorp $39.43 million 5.58 $8.71 million N/A N/A

Ames National has higher revenue and earnings than Fidelity D&D Bancorp.

Risk and Volatility

Ames National has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Fidelity D&D Bancorp has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Ames National and Fidelity D&D Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ames National 0 0 0 0 N/A
Fidelity D&D Bancorp 0 0 0 0 N/A

Dividends

Ames National pays an annual dividend of $0.92 per share and has a dividend yield of 3.4%. Fidelity D&D Bancorp pays an annual dividend of $1.04 per share and has a dividend yield of 1.8%. Ames National has raised its dividend for 2 consecutive years. Ames National is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Ames National and Fidelity D&D Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ames National 27.76% 9.91% 1.20%
Fidelity D&D Bancorp 24.71% 10.61% 1.03%

Summary

Ames National beats Fidelity D&D Bancorp on 8 of the 12 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 and north central Iowa counties of Boone, Hancock, Marshall, Polk, and Story. The company offers a range of deposits, including checking accounts, savings accounts, time deposits, money market accounts, demand deposits, and certificates of deposit; and 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, home improvement loans, and mortgage loans for sale into the secondary market, as well as agricultural and business operating loans and lines of credit. It also provides cash management, merchant credit card processing, safe deposit box and wire transfer, direct deposit of payroll and social security checks, and automated/video teller machine access services, as well as automatic drafts for various accounts. In addition, the company offers farm management, investment, and custodial services for individuals, businesses, and non-profit organizations; and Internet banking and trust services. Ames National Corporation was founded in 1903 and is based in Ames, Iowa.

Fidelity D&D Bancorp Company Profile

Fidelity D & D Bancorp, Inc. operates as the holding company for The Fidelity Deposit and Discount Bank, a state chartered commercial bank that provides a range of banking, financial, and trust services to individuals, small businesses, and corporate customers primarily in Lackawanna and Luzerne counties in Pennsylvania. The company accepts various deposits products, such as demand, savings, clubs, interest and non-interest bearing checking, money market, and interest-bearing time and savings accounts, as well as short-and long-term time deposits or certificates of deposit. Its loan portfolio includes commercial and industrial loans, commercial real estate loans, consumer loans, and residential loans. The company also provides alternative financial and insurance products with asset management services. As of December 31, 2017, it operated 10 full-service banking offices. Fidelity D & D Bancorp, Inc. was founded in 1903 and is headquartered in Dunmore, Pennsylvania.

Receive News & Ratings for Ames National Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ames National and related companies with MarketBeat.com's FREE daily email newsletter.