IF Bancorp (NASDAQ:IROQ) and Dacotah Banks (OTCMKTS:DBIN) Head-To-Head Analysis

IF Bancorp (NASDAQ:IROQ) and Dacotah Banks (OTCMKTS:DBIN) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Dividends

IF Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. Dacotah Banks pays an annual dividend of $0.64 per share and has a dividend yield of 1.6%. IF Bancorp pays out 25.5% of its earnings in the form of a dividend. Dacotah Banks pays out 17.0% 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. Dacotah Banks is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for IF Bancorp and Dacotah Banks, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IF Bancorp	0	1	0	0	2.00
Dacotah Banks	0	0	0	0	0.00

Volatility & Risk

IF Bancorp has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500. Comparatively, Dacotah Banks has a beta of -0.06, suggesting that its stock price is 106% less volatile than the S&P 500.

Profitability

This table compares IF Bancorp and Dacotah Banks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IF Bancorp	10.49%	6.30%	0.58%
Dacotah Banks	N/A	N/A	N/A

Valuation and Earnings

This table compares IF Bancorp and Dacotah Banks”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IF Bancorp	$48.36 million	1.89	$4.30 million	$1.57	17.41
Dacotah Banks	$248.97 million	1.81	$29.73 million	$3.76	10.90

Dacotah Banks has higher revenue and earnings than IF Bancorp. Dacotah Banks is trading at a lower price-to-earnings ratio than IF Bancorp, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

44.1% of IF Bancorp shares are owned by institutional investors. 12.6% of IF Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

IF Bancorp beats Dacotah Banks on 9 of the 14 factors compared between the two stocks.

About IF Bancorp

IF Bancorp, Inc. operates as the savings and loan holding company for Iroquois Federal Savings and Loan Association that provides a range of banking and financial services to individual and corporate clients. The company offers various deposit accounts, including savings accounts, certificates of deposit, money market accounts, commercial and personal checking accounts, individual retirement accounts, and health savings accounts. It provides loans comprising one- to four-family residential mortgage loans; multi-family mortgage loans; commercial real estate loans, such as farm loans; home equity lines of credit; commercial business loans; and consumer loans primarily comprising automobile loans, as well as construction loans and land development loans. In addition, the company sells property and casualty insurance, as well as offers annuities; mutual funds; individual and group retirement plans; life, disability, and health insurance; individual securities; managed accounts; and other financial services. IF Bancorp, Inc. invests in securities; and provides ATM, online banking and bill pay, mobile banking, ACH origination, remote deposit capture, and telephone banking services. The company was founded in 1883 and is headquartered in Watseka, Illinois.

About Dacotah Banks

Dacotah Banks, Inc. provides various banking and financial products and services to individuals and businesses. The company provides demand and certificates of deposit; checking, individual retirement, health savings, and money market accounts; and commercial, commercial real estate, residential mortgage, and consumer loans. It also offers vehicle, boat, motorhome, mortgage, camper, motorcycle, snowmobile, jet SKI, and ATV loans; and unsecured, overdraft protection, and student loans; business, term, and small business administration loans, and other loans. In addition, the company provides credit, debit, and gift cards; mobile and online banking; auto, homeowner, health, and life insurance products; and estate, and trust services. Further, the company offers retirement planning, investment management, foundation, endowment, bill paying, charitable giving, and elder care services, as well as cash management services. Additionally, it provides offers operating lines of credit, state and federal programs, and equipment loans and leases. It also provides crop, homeowner, health, life, farm, and ranch insurance services; and farm and ranch management services. The company operates across various locations in Minnesota, North Dakota, and South Dakota. Dacotah Banks, Inc. was founded in 1955 and is headquartered in Aberdeen, South Dakota.