Meridian (NASDAQ:MRBK) vs. Ames National (NASDAQ:ATLO) Critical Contrast


Meridian (NASDAQ:MRBK – Get Rating) and Ames National (NASDAQ:ATLO – Get Rating) are both small cap finance companies, but which stock is better? We’ll compare the two companies based on valuation strength, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Analyst Notes

This is a summary of Meridian’s and Ames National’s current ratings, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Meridian 0 0 2 0 3.00
Ames National 0 0 0 0 N / A

Meridian currently has a consensus price target of $45.00, indicating a potential upside of 56.52%. Given Meridian’s likely higher upside, stock analysts clearly believe that Meridian is more favorable than Ames National.

Insider and Institutional Ownership

57.0% of Meridian shares are held by institutional investors. By comparison, 21.5% of Ames National’s shares are held by institutional investors. 13.4% of Meridian’s stock is held by insiders of the company. By comparison, 5.1% of Ames National’s stock is held by insiders of the company. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock is poised for long-term growth.

Volatility and risk

Meridian has a beta of 0.44, suggesting its stock price is 56% less volatile than the S&P 500. In comparison, Ames National has a beta of 0.65, suggesting its stock price is 35% less volatile than the S&P 500.

Dividends

Meridian pays an annual dividend of $0.80 per share and has a dividend yield of 2.8%. Ames National pays an annual dividend of $1.08 per share and has a dividend yield of 4.9%. Meridian pays 17.4% of its earnings as a dividend. Meridian has increased its dividend for 1 consecutive year and Ames National has increased its dividend for 3 consecutive years. Ames National is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares the net margins, return on equity and return on assets of Meridian and Ames National.

Net margins Return on equity return on assets
Meridian 20.86% 17.84% 1.62%
Ames National 32.84% 11.45% 1.08%

Benefits and evaluation

This table compares the gross revenue, earnings per share and valuation of Meridian and Ames National.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Meridian $159.51 million 1.10 $35.58 million $4.60 6.25
Ames National $71.02 million 2.83 $23.91 million N / A N / A

Meridian has higher revenue and profits than Ames National.

Summary

Meridian beats Ames National on 8 of 15 factors compared between the two stocks.

About Meridian

(Get a rating)

Meridian Corporation operates as the holding company of Meridian Bank which provides commercial banking products and services in Pennsylvania, New Jersey, Delaware and Maryland. The Company offers various deposit products, such as interest-free current accounts, current accounts, savings accounts, money market accounts and term deposits. It also provides commercial and industrial loans including commercial lines of credit, term loans, small business loans, leases and national credit shares; commercial real estate and loans for the development and construction of land for residential and commercial projects; and consumer and home equity lending, private banking, merchant services, and title and land settlement services. In addition, the company manages and grants mortgage loans for 1 to 4 family dwellings; and provides real estate holding, investment advisory and equipment rental services. It operates through a network of 6 full-service branches and 19 other offices. The company was founded in 2004 and is based in Malvern, Pennsylvania.

About Ames National

(Get a rating)

National Ames LogoAmes 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 Central, Mid- north and south. -Central Iowa. The company accepts a range of deposits, including checking and savings accounts; and term deposits, such as money market accounts and certificates of deposit. It also provides loans, such as short and medium term commercial and agricultural real estate loans, residential real estate loans, loans for equipment, vehicles and home improvement; personal loans and lines of credit; agricultural and business loans and lines of credit; and creates mortgages for sale in 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 checks and ATM access services. automatic / video; and automatic drafts for various accounts, as well as wealth management services. Additionally, it provides farm management, investment, and custodial services to individuals, businesses, and non-profit organizations; and online, mobile and private banking management services. Ames National Corporation was founded in 1903 and is based in Ames, Iowa.



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