Head-To-Head Comparison: Ames National (NASDAQ:ATLO) versus Peoples Bancorp of North Carolina (NASDAQ:PEBK)

Ames National (NASDAQ:ATLO) and Peoples Bancorp of North Carolina (NASDAQ:PEBK) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Dividends

Ames National pays an annual dividend of $0.96 per share and has a dividend yield of 3.0%. Peoples Bancorp of North Carolina pays an annual dividend of $0.84 per share and has a dividend yield of 1.9%. Ames National pays out 37.2% of its earnings in the form of a dividend. Peoples Bancorp of North Carolina pays out 23.1% 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. Peoples Bancorp of North Carolina has increased its dividend for 1 consecutive years.

Risk and Volatility

Ames National has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500. Comparatively, Peoples Bancorp of North Carolina has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.

Insider & Institutional Ownership

26.5% of Ames National shares are owned by institutional investors. Comparatively, 43.8% of Peoples Bancorp of North Carolina shares are owned by institutional investors. 2.3% of Ames National shares are owned by company insiders. Comparatively, 14.5% of Peoples Bancorp of North Carolina shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Ames National and Peoples Bancorp of North Carolina’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ames National	22.64%	11.08%	1.08%
Peoples Bancorp of North Carolina	17.25%	12.75%	1.15%

Analyst Recommendations

This is a summary of current ratings and target prices for Ames National and Peoples Bancorp of North Carolina, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ames National	0	2	1	0	2.33
Peoples Bancorp of North Carolina	0	0	1	0	3.00

Ames National presently has a consensus price target of $31.00, suggesting a potential downside of 2.58%. Given Ames National’s higher probable upside, equities research analysts plainly believe Ames National is more favorable than Peoples Bancorp of North Carolina.

Valuation and Earnings

This table compares Ames National and Peoples Bancorp of North Carolina”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ames National	$98.26 million	2.87	$19.03 million	$2.58	12.33
Peoples Bancorp of North Carolina	$114.60 million	2.06	$19.83 million	$3.64	11.88

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

Summary

Peoples Bancorp of North Carolina beats Ames National on 10 of the 16 factors compared between the two stocks.

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.

About Peoples Bancorp of North Carolina

Peoples Bancorp of North Carolina, Inc. operates as the bank holding company for Peoples Bank that provides various banking products and services for individuals and small-to medium-sized businesses. It offers checking, savings, money market, and retirement accounts; certificates of deposits; and credit and debit cards. The company also originates commercial real estate loans, commercial loans, construction and land development loans, and residential mortgage loans; and individual taxpayer identification number mortgage loans, as well as agricultural loans. In addition, it provides investment counseling and non-deposit investment products, such as stocks, bonds, mutual funds, tax deferred annuities, and related brokerage services; and real estate appraisal and brokerage services. Further, the company operates as a clearing-house for the provision of appraisal services for community banks; and acquires, manages, and disposes real property, other collateral, and other assets obtained in the ordinary course of collecting debts. Peoples Bancorp of North Carolina, Inc. was founded in 1912 and is headquartered in Newton, North Carolina.