Ames National (NASDAQ: ATLO – Get Rating) and Comerica (NYSE: CMA – Get Rating) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.
Risk and Volatility:
Ames National has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Comerica has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.
Earnings & Valuation:
This table compares Ames National and Comerica’s gross revenue, earnings per share and valuation.
| Gross Revenue: | Price / Sales Ratio: | Net Income: | Earnings Per Share: | Price / Earnings Ratio: | |
| Ames National: | $ 71.02 million: | 2.90: | $ 23.91 million: | N / A: | N / A: |
| Comerica: | $ 3.02 billion: | 3.23: | $ 1.17 billion: | $ 7.25: | 10.29: |
Comerica has higher revenue and earnings than Ames National.
Dividends:
Ames National pays an annual dividend of $ 1.08 per share and has a dividend yield of 4.8%. Comerica pays an annual dividend of $ 2.72 per share and has a dividend yield of 3.6%. Comerica pays out 37.5% of its earnings in the form of a dividend. Ames National has increased its dividend for 3 consecutive years. Ames National is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership:
21.5% of Ames National shares are owned by institutional investors. Comparatively, 80.1% of Comerica shares are owned by institutional investors. 5.1% of Ames National shares are owned by company insiders. Comparatively, 0.8% of Comerica shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability:
This table compares Ames National and Comerica’s net margins, return on equity and return on assets.
| Net Margins: | Return on Equity: | Return on Assets: | |
| Ames National: | 32.84% | 11.45% | 1.08% |
| Comerica: | 33.48% | 13.85% | 1.10% |
Analyst Ratings:
This is a breakdown of current recommendations and price targets for Ames National and Comerica, as provided by MarketBeat.
| Sell Ratings: | Hold Ratings: | Buy Ratings: | Strong Buy Ratings: | Rating Score: | |
| Ames National: | 0: | 0: | 0: | 0: | N / A: |
| Comerica: | 2: | 6: | 12: | 0: | 2.50: |
Comerica has a consensus price target of $ 99.10, indicating a potential upside of 32.81%. Given Comerica’s higher possible upside, analysts clearly believe Comerica is more favorable than Ames National.
Summary:
Comerica beats Ames National on 11 of the 15 factors compared between the two stocks.
About Ames National: (Get Rating)
Ames National Corporation operates as a multi-bank holding company that provides banking products and services primarily in Adams, Boone, Clarke, Hancock, Polk, Marshall, Ringgold, Story, Taylor, and Union counties in the central, north-central, and south -central Iowa. The company accepts a range of deposits, 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; 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 of payroll and social security check, 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 management, mobile and and private banking services. Ames National Corporation was founded in 1903 and is based in Ames, Iowa.
About Comerica: (Get Rating)
Comerica Incorporated, through its subsidiaries, provides various financial products and services. It operates through Commercial Bank, Retail Bank, Wealth Management, and Finance segments. The Commercial Bank segment offers various products and services, including commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, foreign exchange management services, and loan syndication services for small and medium market businesses , multinational corporations, and governmental entities. The Retail Bank segment provides personal financial services, such as consumer lending, consumer deposit gathering, and mortgage loan origination. This segment also offers various consumer products that include deposit accounts, installment loans, credit cards, student loans, home equity lines of credit, and residential mortgage loans, as well as commercial products and services to micro-businesses. The Wealth Management segment provides products and services comprising fiduciary, private banking, retirement, investment management and advisory, and investment banking and brokerage services. This segment also sells annuity products, as well as life, disability, and long-term care insurance products. The Finance segment engages in the securities portfolio, and asset and liability management activities. It operates in Texas, California, Michigan, Arizona, Florida, Canada, and Mexico. The company was formerly known as DETROITBANK Corporation and changed its name to Comerica Incorporated in July 1982. Comerica Incorporated was founded in 1849 and is headquartered in Dallas, Texas.
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