Comparing Dacotah Banks (OTCMKTS:DBIN) & OFG Bancorp (NYSE:OFG)

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

Profitability

This table compares Dacotah Banks and OFG Bancorp’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
OFG Bancorp	22.72%	15.21%	1.69%

Volatility and Risk

Dacotah Banks has a beta of -0.05, meaning that its stock price is 105% less volatile than the S&P 500. Comparatively, OFG Bancorp has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dacotah Banks	$288.18 million	1.68	$46.75 million	$4.01	10.97
OFG Bancorp	$902.28 million	2.01	$205.10 million	$4.58	9.33

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Dacotah Banks and OFG Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dacotah Banks	0	0	0	0	0.00
OFG Bancorp	0	4	3	0	2.43

OFG Bancorp has a consensus target price of $45.83, indicating a potential upside of 7.24%. Given OFG Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe OFG Bancorp is more favorable than Dacotah Banks.

Institutional and Insider Ownership

92.7% of OFG Bancorp shares are held by institutional investors. 1.2% of OFG Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Dacotah Banks pays an annual dividend of $0.72 per share and has a dividend yield of 1.6%. OFG Bancorp pays an annual dividend of $1.40 per share and has a dividend yield of 3.3%. Dacotah Banks pays out 18.0% of its earnings in the form of a dividend. OFG Bancorp pays out 30.6% 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. OFG Bancorp has increased its dividend for 5 consecutive years. OFG Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

OFG Bancorp beats Dacotah Banks on 15 of the 17 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 OFG Bancorp

OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, and individual retirement accounts; certificate of deposits, as well as time deposit products; commercial, consumer, auto leasing, and mortgage lending services; credit cards; cash management; financial planning and insurance services; and corporate and individual trust, and retirement services. In addition, it provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. Further, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; and various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments. Additionally, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company provides investment brokerage, transactional, international trade financing, residential mortgage, and consumer finance services. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.