Financial Analysis: Ames National (NASDAQ:ATLO) & Citigroup (NASDAQ:C)

Ames National (NASDAQ:ATLO) and Citigroup (NYSE:C) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Ames National 28.92% 10.02% 1.20%
Citigroup 18.24% 10.12% 0.94%

Institutional & Insider Ownership

23.7% of Ames National shares are owned by institutional investors. Comparatively, 76.0% of Citigroup shares are owned by institutional investors. 4.8% of Ames National shares are owned by company insiders. Comparatively, 0.1% of Citigroup shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Ames National and Citigroup, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ames National 0 0 0 0 N/A
Citigroup 0 3 17 0 2.85

Citigroup has a consensus target price of $78.89, indicating a potential upside of 10.62%. Given Citigroup’s higher probable upside, analysts clearly believe Citigroup is more favorable than Ames National.

Volatility & Risk

Ames National has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, Citigroup has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500.

Dividends

Ames National pays an annual dividend of $0.96 per share and has a dividend yield of 3.6%. Citigroup pays an annual dividend of $1.80 per share and has a dividend yield of 2.5%. Citigroup pays out 27.1% of its earnings in the form of a dividend. Ames National has increased its dividend for 3 consecutive years and Citigroup has increased its dividend for 4 consecutive years.

Earnings and Valuation

This table compares Ames National and Citigroup’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ames National $57.63 million 4.32 $17.01 million N/A N/A
Citigroup $97.12 billion 1.70 $18.05 billion $6.65 10.72

Citigroup has higher revenue and earnings than Ames National.

Summary

Citigroup beats Ames National on 8 of the 15 factors compared between the two stocks.

About Ames National

Ames National Corporation operates as a multi-bank holding company that provides banking services primarily in the central, north-central, and south-central Iowa counties of Boone, Clarke, Hancock, Marshall, Polk, and Story. The company offers a range of deposits, including checking, savings, and accounts; and time deposits of various types, including money market accounts and certificates of deposit. It also provides loans, such as short-term and medium-term commercial and agricultural real estate loans, residential real estate loans, equipment loans, vehicle loans, personal loans and lines of credit, and home improvement loans, as well as 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 trust services comprising wealth management services. Further, it provides farm management, investment, and custodial services for individuals, businesses, and non-profit organizations; and online management, mobile banking, and private banking services. The company was founded in 1903 and is based in Ames, Iowa.

About Citigroup

Citigroup Inc., a diversified financial services holding company, provides various financial products and services for consumers, corporations, governments, and institutions in North America, Latin America, Asia, Europe, the Middle East, and Africa. The company operates through two segments, Global Consumer Banking (GCB) and Institutional Clients Group (ICG). The GCB segment offers traditional banking services to retail customers through retail banking, commercial banking, Citi-branded cards, and Citi retail services. It also provides various banking, credit card lending, and investment services through a network of local branches, offices, and electronic delivery systems. The ICG segment provides wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative services, equity and fixed income research, corporate and consumer loans, investment banking and advisory services, private banking, cash management, trade finance, and securities services to corporate, institutional, public sector, and high-net-worth clients. As of December 31, 2018, it operated 2,410 branches in the United States, Mexico, and Asia. Citigroup Inc. was founded in 1812 and is headquartered in New York, New York.

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