Financial Survey: Ames National (NASDAQ:ATLO) versus Arrow Financial (NASDAQ:AROW)

Arrow Financial (NASDAQ:AROWGet Rating) and Ames National (NASDAQ:ATLOGet Rating) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

43.8% of Arrow Financial shares are owned by institutional investors. Comparatively, 21.5% of Ames National shares are owned by institutional investors. 4.2% of Arrow Financial shares are owned by insiders. Comparatively, 5.1% of Ames National shares are owned 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.

Earnings and Valuation

This table compares Arrow Financial and Ames National’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arrow Financial $147.92 million 3.39 $49.86 million $3.05 10.30
Ames National $71.02 million 2.96 $23.91 million $2.61 8.87

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

Profitability

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

Net Margins Return on Equity Return on Assets
Arrow Financial 33.05% 13.60% 1.23%
Ames National 33.67% 11.49% 1.14%

Volatility & Risk

Arrow Financial has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, Ames National has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Dividends

Arrow Financial pays an annual dividend of $1.08 per share and has a dividend yield of 3.4%. Ames National pays an annual dividend of $1.08 per share and has a dividend yield of 4.7%. Arrow Financial pays out 35.5% of its earnings in the form of a dividend. Ames National pays out 41.4% 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. Arrow Financial has raised its dividend for 21 consecutive years and Ames National has raised its dividend for 3 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Arrow Financial and Ames National, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arrow Financial 0 0 0 0 N/A
Ames National 0 0 0 0 N/A

Summary

Arrow Financial beats Ames National on 10 of the 14 factors compared between the two stocks.

Arrow Financial Company Profile (Get Rating)

Arrow Financial Corporation, a bank holding company, provides commercial and consumer banking, and financial products and services. The company's deposit products include demand deposits, interest-bearing checking accounts, savings deposits, time deposits, and other time deposits. Its lending activities comprise commercial loans, such as term loans, time notes, and lines of credit; and commercial real estate loans to finance real estate purchases, refinancing, expansions, and improvements to commercial properties, as well as commercial construction and land development loans to finance projects. The company's lending activities also include consumer installment loans to finance personal expenditures, personal lines of credit, overdraft protection, and automobile loans; and residential real estate loans, fixed home equity loans, and home equity lines of credit for consumers to finance home improvements, debt consolidation, education, and other uses. In addition, it maintains an indirect lending program; and sells residential real estate loan originations into the secondary market. Further, the company provides retirement planning, trust, and estate administration services for individuals; and pension, profit-sharing, and employee benefit plan administration services for corporations. Additionally, it offers insurance agency services comprising group health care policies and life insurance, and property and casualty insurance products; and investment advisory services to its proprietary mutual funds, as well as holds a real estate investment trust. The company operates in the northeastern region of New York State in Warren, Washington, Saratoga, Essex, Clinton, Rensselaer, Albany, and Schenectady counties, as well as surrounding areas. It owns 26 branch banking offices; and leases 12 branch banking offices, as well as two residential loan origination offices. Arrow Financial Corporation was founded in 1851 and is headquartered in Glens Falls, New York.

Ames National Company Profile (Get Rating)

Ames National Corporation operates as a multi-bank holding company that provides banking products and services primarily in Adams, Boone, Clarke, Hancock, Polk, Marshall, Ringgold, Story, Taylor, and Union counties in the central, north-central, and south-central Iowa. The company accepts a range of deposits, 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; 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 of payroll and social security check, 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 management, mobile and and private banking services. Ames National Corporation was founded in 1903 and is based in Ames, Iowa.

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