Critical Review: Akbank T.A.S. (OTCMKTS:AKBTY) and Ames National (NASDAQ:ATLO)

Akbank T.A.S. (OTCMKTS:AKBTYGet Rating) and Ames National (NASDAQ:ATLOGet Rating) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Profitability

This table compares Akbank T.A.S. and Ames National’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Akbank T.A.S. N/A N/A N/A
Ames National 32.84% 11.45% 1.08%

Insider & Institutional Ownership

21.5% of Ames National shares are held by institutional investors. 5.1% of Ames National shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Akbank T.A.S. and Ames National’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Akbank T.A.S. $5.81 billion 0.43 $898.88 million N/A N/A
Ames National $71.02 million 2.92 $23.91 million N/A N/A

Akbank T.A.S. has higher revenue and earnings than Ames National.

Risk & Volatility

Akbank T.A.S. has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Ames National has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.

Dividends

Akbank T.A.S. pays an annual dividend of $0.02 per share and has a dividend yield of 2.1%. Ames National pays an annual dividend of $1.08 per share and has a dividend yield of 4.7%. 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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Akbank T.A.S. and Ames National, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Akbank T.A.S. 0 1 3 0 2.75
Ames National 0 0 0 0 N/A

Summary

Ames National beats Akbank T.A.S. on 8 of the 12 factors compared between the two stocks.

Akbank T.A.S. Company Profile (Get Rating)

Akbank T.A.S., together with its subsidiaries, provides various banking products and services in Turkey and internationally. It operates through: Retail Banking; Commercial Banking, SME Banking, Corporate-Investment and Private Banking; and Treasury segments. The company's retail banking services comprise deposit accounts, retail loans, commercial installment loans, credit cards, insurance products, and asset management services, as well as bank cards, investment funds trading, automatic payment, foreign currency trading, safe deposit box rental, cheques, money transfer, investment banking, and telephone and internet banking. It also offers services to large, medium, and small size corporate and commercial customers that include Turkish Lira (TL) and foreign currency denominated working capital loans financing for investments, foreign trade financing, derivative instruments for hedging purposes of foreign currency and interest risk, letters of credit, foreign currency trading, corporate finance, and deposit and cash management services, as well as project finance loans; and timely and permanent solutions for corporate customers' working capital management, delivering cash management services based on customers' requests that include collection and payment services and liquidity and information management. In addition, the company engages in treasury activities consisting of TL and foreign currency spot and forward transactions, treasury and government bonds, Eurobonds, and private sector bond transactions, as well as derivative trading activities; and marketing and pricing activities related treasury products. Further, it provides financial leasing services, stock exchange brokerage services, and portfolio management, as well as offers payment services and issues electronic money. As of December 31, 2021, the company operated 710 branches. Akbank T.A.S. was founded in 1948 and is headquartered in Istanbul, Turkey.

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.

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