Dacotah Banks (OTCMKTS:DBIN) & Norwood Financial (NASDAQ:NWFL) Head-To-Head Survey

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Dacotah Banks and Norwood Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dacotah Banks	0	0	0	0	0.00
Norwood Financial	0	3	0	0	2.00

Norwood Financial has a consensus target price of $26.50, indicating a potential downside of 14.52%. Given Norwood Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Norwood Financial is more favorable than Dacotah Banks.

Dividends

Dacotah Banks pays an annual dividend of $0.64 per share and has a dividend yield of 1.4%. Norwood Financial pays an annual dividend of $1.28 per share and has a dividend yield of 4.1%. Dacotah Banks pays out 17.0% of its earnings in the form of a dividend. Norwood Financial pays out 42.8% 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. Norwood Financial has increased its dividend for 7 consecutive years. Norwood Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Dacotah Banks and Norwood Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dacotah Banks	$248.97 million	1.99	$29.73 million	$3.76	11.97
Norwood Financial	$136.15 million	2.11	$27.75 million	$2.99	10.37

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

Insider and Institutional Ownership

28.1% of Norwood Financial shares are held by institutional investors. 8.2% of Norwood Financial 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.

Profitability

This table compares Dacotah Banks and Norwood Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dacotah Banks	N/A	N/A	N/A
Norwood Financial	20.39%	12.60%	1.20%

Risk and Volatility

Dacotah Banks has a beta of -0.05, indicating that its stock price is 105% less volatile than the S&P 500. Comparatively, Norwood Financial has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.

Summary

Norwood Financial beats Dacotah Banks on 11 of the 16 factors compared between the two stocks.

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.

About Norwood Financial

Norwood Financial Corp. operates as the bank holding company for Wayne Bank that provides various banking products and services. The company accepts a range of deposit products, including interest-bearing and non-interest-bearing transaction accounts, and statement savings and money market accounts, as well as certificate of deposits. It also provides commercial loans comprising lines of credit, revolving credit, term loans, mortgages, secured lending products, and letter of credit facilities; municipal finance lending; construction loans for commercial construction projects and single-family residences; land loans; construction financing; consumer loans; mortgage lending to finance principal residences and second home dwellings; and indirect dealer financing of new and used automobiles, boats, and recreational vehicles. In addition, the company offers investment securities services; personal and business credit services; trust and investment products; and cash management, direct deposit, remote deposit capture, mobile deposit capture, automated clearing house activity, real estate settlement, and Internet and mobile banking services. Further, it engages in the annuity and mutual fund sale, and discount brokerage activities, as well as insurance agency business. The company serves consumers, businesses, nonprofit organizations, and municipalities. It operates branches in Northeastern Pennsylvania; and in Delaware, Sullivan, Ontario, Otsego, and Yates Counties, New York, as well as automated teller machines. Norwood Financial Corp. was founded in 1870 and is headquartered in Honesdale, Pennsylvania.