Analyzing Ames National (NASDAQ:ATLO) & Equitable Financial (OTCMKTS:EQFN)

Ames National (NASDAQ:ATLO) and Equitable Financial (OTCMKTS:EQFN) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Ames National and Equitable Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ames National	21.63%	10.65%	1.02%
Equitable Financial	9.70%	6.57%	0.64%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Ames National and Equitable Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ames National	0	2	1	0	2.33
Equitable Financial	0	0	0	0	0.00

Ames National currently has a consensus price target of $31.00, indicating a potential upside of 3.99%. Given Ames National’s stronger consensus rating and higher probable upside, analysts plainly believe Ames National is more favorable than Equitable Financial.

Institutional & Insider Ownership

26.5% of Ames National shares are owned by institutional investors. Comparatively, 7.2% of Equitable Financial shares are owned by institutional investors. 2.3% of Ames National shares are owned by insiders. Comparatively, 11.3% of Equitable Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Ames National and Equitable Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ames National	$98.26 million	2.69	$19.03 million	$2.42	12.32
Equitable Financial	$33.95 million	1.27	$3.44 million	$1.34	13.02

Ames National has higher revenue and earnings than Equitable Financial. Ames National is trading at a lower price-to-earnings ratio than Equitable Financial, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Ames National has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, Equitable Financial has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500.

Summary

Ames National beats Equitable Financial on 12 of the 14 factors compared between the two stocks.

About Ames National

Ames National Corporation operates as a multi-bank holding company that provides banking products and services primarily in Boone, Clarke, Hancock, Marshall, Polk, Story, and Union counties in central, north central, and south-central Iowa. The company accepts various deposit products, including checking and savings accounts; and time deposits, such as money market accounts and certificates of deposit. It also provides loans, such as short-term and medium-term commercial and agricultural real estate, residential real estate loans, equipment, vehicle, and home improvement loans; consumer loans to finance consumer purchases, such as automobiles, trucks, recreational vehicles, household furnishings, boats, personal loans, and lines of credit; 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, and automated/video teller machine access services; and automatic drafts for various accounts, as well as wealth management services. Further, it provides farm management, investment, and custodial services for individuals, businesses, and non-profit organizations; and online, mobile, and private banking services. Ames National Corporation was incorporated in 1903 and is headquartered in Ames, Iowa.

About Equitable Financial

Equitable Financial Corp. operates as the holding company for Equitable Bank that provides various banking products and services in Nebraska, the United States. The company offers checking and savings accounts; recorder checks; online and mobile banking; remote deposit capture; voice banking; credit card processing; debit and gift cards; and safe deposit boxes. It also provides home, home equity, auto, personal, real estate and construction, operating lines of credit, small business administration, and agricultural loans, as well as equipment financing. In addition, the company offers foreign currency and exchanges; financial planning; wealth management; investment advisory; and retirement services. It operates through branches located in Grand Island, North Platte, and Omaha. The company was founded in 1882 and is headquartered in Grand Island, Nebraska.