Ames National (NASDAQ:ATLO – Get Free Report) and Parke Bancorp (NASDAQ:PKBK – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.
Institutional & Insider Ownership
26.5% of Ames National shares are owned by institutional investors. Comparatively, 49.7% of Parke Bancorp shares are owned by institutional investors. 2.3% of Ames National shares are owned by insiders. Comparatively, 13.0% of Parke Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Ames National and Parke Bancorp”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ames National | $72.56 million | 4.10 | $19.03 million | $2.87 | 11.72 |
| Parke Bancorp | $93.60 million | 4.14 | $37.78 million | $3.97 | 8.29 |
Parke Bancorp has higher revenue and earnings than Ames National. Parke Bancorp is trading at a lower price-to-earnings ratio than Ames National, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for Ames National and Parke Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ames National | 0 | 1 | 1 | 1 | 3.00 |
| Parke Bancorp | 0 | 0 | 1 | 0 | 3.00 |
Ames National currently has a consensus price target of $31.00, suggesting a potential downside of 7.82%. Given Ames National’s higher probable upside, analysts plainly believe Ames National is more favorable than Parke Bancorp.
Risk & Volatility
Ames National has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, Parke Bancorp has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500.
Dividends
Ames National pays an annual dividend of $0.96 per share and has a dividend yield of 2.9%. Parke Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.4%. Ames National pays out 33.4% of its earnings in the form of a dividend. Parke Bancorp pays out 20.2% 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.
Profitability
This table compares Ames National and Parke Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ames National | 24.44% | 12.15% | 1.19% |
| Parke Bancorp | 30.55% | 14.13% | 2.10% |
Summary
Parke Bancorp beats Ames National on 11 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 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 Parke Bancorp
Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company offers various deposit products, including checking, savings, time, money market, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans. In addition, the company provides debit cards, internet banking, and online bill payment services. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.
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