Ames National (NASDAQ:ATLO) and NBT Bancorp (NASDAQ:NBTB) Head to Head Analysis

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

Analyst Recommendations

This is a summary of current ratings for Ames National and NBT Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ames National 0 0 0 0 N/A
NBT Bancorp 0 1 0 0 2.00

Profitability

This table compares Ames National and NBT Bancorp’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%
NBT Bancorp 24.00% 11.50% 1.21%

Insider and Institutional Ownership

23.7% of Ames National shares are owned by institutional investors. Comparatively, 54.5% of NBT Bancorp shares are owned by institutional investors. 4.8% of Ames National shares are owned by insiders. Comparatively, 3.3% of NBT Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Ames National pays an annual dividend of $0.96 per share and has a dividend yield of 3.5%. NBT Bancorp pays an annual dividend of $1.04 per share and has a dividend yield of 2.8%. NBT Bancorp pays out 40.6% of its earnings in the form of a dividend. Ames National has raised its dividend for 3 consecutive years and NBT Bancorp has raised its dividend for 6 consecutive years.

Earnings and Valuation

This table compares Ames National and NBT Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ames National $57.63 million 4.39 $17.01 million N/A N/A
NBT Bancorp $469.02 million 3.45 $112.57 million $2.56 14.46

NBT Bancorp has higher revenue and earnings than Ames National.

Risk and Volatility

Ames National has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, NBT Bancorp has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Summary

NBT Bancorp beats Ames National on 7 of the 13 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 NBT Bancorp

NBT Bancorp Inc., a financial holding company, provides commercial banking, retail banking, and wealth management services. Its deposit products include demand deposit, savings, negotiable order of withdrawal, money market deposit, and certificate of deposit accounts. The company's loan portfolio comprises commercial and industrial, commercial real estate, agricultural, and commercial construction loans; indirect and direct consumer, home equity, direct loans, mortgages, business banking loans, and commercial loans; and residential real estate loans, as well as development loans. It also provides trust and investment services; financial planning and life insurance services; and retirement plan consulting and recordkeeping services. In addition, the company offers insurance products comprising personal property and casualty, business liability, and commercial insurance, as well as other products and services through 24-hour online, mobile, and telephone channels that enable customers to check balances, make deposits, transfer funds, pay bills, access statements, apply for loans, and access various other products and services. As of December 31, 2018, it had 151 banking locations and 182 ATMs in Pennsylvania, Vermont, Massachusetts, New Hampshire, and Maine. NBT Bancorp Inc. was founded in 1856 and is headquartered in Norwich, New York.

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