Financial Analysis: Ames National (NASDAQ:ATLO) and BNCCORP (OTCMKTS:BNCC)

Insider & Institutional Ownership

26.5% of Ames National shares are owned by institutional investors. 3.2% of Ames National shares are owned by company insiders. Comparatively, 28.4% of BNCCORP 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.

Volatility & Risk

Ames National has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, BNCCORP has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ames National	10.77%	5.92%	0.44%
BNCCORP	15.03%	7.54%	0.83%

Earnings & Valuation

This table compares Ames National and BNCCORP”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ames National	$83.52 million	N/A	$10.82 million	$1.07	17.06
BNCCORP	$53.28 million	1.87	$5.70 million	$2.21	12.71

Ames National has higher revenue and earnings than BNCCORP. BNCCORP 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

BNCCORP beats Ames National on 6 of the 10 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 BNCCORP

BNCCORP, Inc. operates as the bank holding company for BNC National Bank that provides community banking, retail and mortgage banking, and wealth management services to businesses and consumers. The company offers commercial banking services, including business financing, commercial real estate lending, small business administration loans, business checking, cash management, corporate credit cards, and merchant services to small to middle-market businesses. It also provides retail and mortgage banking services, such as personal checking and savings products, personal loans, and card services; and residential loans through a consumer direct channel, as well as a retail channel. In addition, the company offers wealth management solutions, including 401(k) and other retirement plans, trust services, and personal wealth advisory services. It offers community banking and wealth management services through 11 locations in Arizona and North Dakota; and mortgage banking services through 7 locations in Arizona, North Dakota, Illinois, and Kansas. The company was incorporated in 1987 and is headquartered in Bismarck, North Dakota.