Meridian (NASDAQ:MRBK – Get Rating) and Ames National (NASDAQ:ATLO – Get Rating) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.
Analyst Ratings
This is a summary of current ratings for Meridian and Ames National, as reported by MarketBeat.com.
Get Meridian alerts:| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Meridian | 0 | 0 | 2 | 0 | 3.00 |
| Ames National | 0 | 0 | 0 | 0 | N/A |
Meridian presently has a consensus price target of $45.00, indicating a potential upside of 56.52%. Given Meridian's higher probable upside, equities analysts plainly believe Meridian is more favorable than Ames National.
Insider and Institutional Ownership
57.0% of Meridian shares are owned by institutional investors. Comparatively, 21.5% of Ames National shares are owned by institutional investors. 13.4% of Meridian shares are owned by company insiders. Comparatively, 5.1% of Ames National shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.Volatility and Risk
Meridian has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, Ames National has a beta of 0.65, suggesting that its share 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 out 17.4% of its earnings in the form of a dividend. Meridian has raised its dividend for 1 consecutive years and Ames National has raised 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.
Profitability
This table compares Meridian and Ames National's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Meridian | 20.86% | 17.84% | 1.62% |
| Ames National | 32.84% | 11.45% | 1.08% |
Earnings and Valuation
This table compares Meridian and Ames National's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | 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 earnings than Ames National.
Summary
Meridian beats Ames National on 8 of the 15 factors compared between the two stocks.
About Meridian
(Get Rating)
Meridian Corporation operates as the holding company for Meridian Bank that provides commercial banking products and services in Pennsylvania, New Jersey, Delaware, and Maryland. The company offers various deposit products, such as demand non-interest bearing, demand interest bearing, savings accounts, money market accounts, and time deposits. It also provides commercial and industrial loans comprising business lines of credit, term loans, small business lending, lease financing, and shared national credits; commercial real estate, and land development and construction loans for residential and commercial projects; and consumer and home equity lending, private banking, merchant, and title and land settlement services. In addition, the company operates and originates mortgage loans for 1-4 family dwellings; and offers real estate holding, investment advisory, and equipment leasing services. It operates through a network of 6 full-service branches, and 19 other offices. The company was founded in 2004 and is headquartered in Malvern, Pennsylvania.
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.
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