Ottawa Bancorp (OTCMKTS:OTTW – Get Free Report) and LINKBANCORP (NASDAQ:LNKB – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
Valuation and Earnings
This table compares Ottawa Bancorp and LINKBANCORP”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ottawa Bancorp | $17.43 million | 1.98 | $780,000.00 | $0.79 | 19.01 |
| LINKBANCORP | $167.59 million | 1.62 | $26.21 million | $1.02 | 7.11 |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Ottawa Bancorp and LINKBANCORP, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ottawa Bancorp | 0 | 0 | 0 | 0 | 0.00 |
| LINKBANCORP | 0 | 1 | 1 | 1 | 3.00 |
LINKBANCORP has a consensus target price of $8.75, suggesting a potential upside of 20.69%. Given LINKBANCORP’s stronger consensus rating and higher probable upside, analysts clearly believe LINKBANCORP is more favorable than Ottawa Bancorp.
Risk & Volatility
Ottawa Bancorp has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, LINKBANCORP has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.
Dividends
Ottawa Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 2.9%. LINKBANCORP pays an annual dividend of $0.30 per share and has a dividend yield of 4.1%. Ottawa Bancorp pays out 55.7% of its earnings in the form of a dividend. LINKBANCORP pays out 29.4% 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. LINKBANCORP is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Ottawa Bancorp and LINKBANCORP’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ottawa Bancorp | 9.05% | 4.04% | 0.46% |
| LINKBANCORP | 20.81% | 10.28% | 1.03% |
Institutional and Insider Ownership
37.5% of LINKBANCORP shares are held by institutional investors. 7.8% of Ottawa Bancorp shares are held by insiders. Comparatively, 37.5% of LINKBANCORP shares are held 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.
Summary
LINKBANCORP beats Ottawa Bancorp on 15 of the 17 factors compared between the two stocks.
About Ottawa Bancorp
Ottawa Bancorp, Inc. operates as the bank holding company for OSB Community Bank, a savings bank that provides various financial services to individual and corporate customers in Illinois. The company's deposit products include saving, checking, money market, and interest-bearing accounts, as well as certificate of deposit. Its loan portfolio comprises commercial, non-residential real estate, one-to-four family residential, multi-family residential, consumer direct, and purchased auto loans; business and construction loans; motor vehicle, home improvement, share, and personal unsecured loans, as well as home equity and small personal credit lines; mortgage loans; and student loans. The company also provides cash management solutions, such as remote deposit capture, automated clearing house/payroll direct deposit, and merchant services, as well as commercial leasing services. In addition, it offers notary, lamination, night depository, document faxing, money gift envelopes, safe deposit boxes, and coin counting, as well as debit and credit cards, and digital banking services. The company was formerly known as Ottawa Savings Bancorp, Inc. and changed its name to Ottawa Bancorp, Inc. in October 2016. Ottawa Bancorp, Inc. was founded in 1871 and is based in Ottawa, Illinois.
About LINKBANCORP
LINKBANCORP, Inc. operates as a bank holding company for The Gratz Bank, that provides various banking products and services to individuals, families, nonprofit, and business customers in Pennsylvania. Its deposit products include demand, saving, and money market accounts, as well as certificates of deposits. The company also offers commercial real estate, commercial business, commercial real estate construction, land development, residential real estate, home equity, consumer, agricultural, and municipal loans. It also provides online banking, mobile banking, direct and remote deposit, and cash management services. The company was incorporated in 2018 and is headquartered in Camp Hill, Pennsylvania.
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