Ames National (NASDAQ:ATLO) and Equitable Financial (OTCMKTS:EQFN) Head to Head Comparison

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equitable Financial	$33.95 million	1.27	$3.44 million	$1.34	13.02
Ames National	$98.26 million	2.70	$19.03 million	$2.42	12.36

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.

Institutional and Insider Ownership

7.2% of Equitable Financial shares are owned by institutional investors. Comparatively, 26.5% of Ames National shares are owned by institutional investors. 11.3% of Equitable Financial shares are owned by insiders. Comparatively, 2.3% 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.

Profitability

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

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

Risk and Volatility

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

Analyst Recommendations

This is a summary of current ratings and price targets for Equitable Financial and Ames National, as provided by MarketBeat.

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

Ames National has a consensus price target of $31.00, indicating a potential upside of 3.64%. Given Ames National’s stronger consensus rating and higher possible upside, analysts clearly believe Ames National is more favorable than Equitable Financial.

Summary

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

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.

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.