Fidelity D&D Bancorp (NASDAQ:FDBC) & Dacotah Banks (OTCMKTS:DBIN) Financial Contrast

Fidelity D&D Bancorp (NASDAQ:FDBC) and Dacotah Banks (OTCMKTS:DBIN) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Valuation & Earnings

This table compares Fidelity D&D Bancorp and Dacotah Banks”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelity D&D Bancorp	$126.04 million	1.99	$20.79 million	$4.51	9.65
Dacotah Banks	$248.97 million	1.71	$29.73 million	$3.25	11.78

Dacotah Banks has higher revenue and earnings than Fidelity D&D Bancorp. Fidelity D&D Bancorp is trading at a lower price-to-earnings ratio than Dacotah Banks, indicating that it is currently the more affordable of the two stocks.

Dividends

Fidelity D&D Bancorp pays an annual dividend of $1.60 per share and has a dividend yield of 3.7%. Dacotah Banks pays an annual dividend of $0.64 per share and has a dividend yield of 1.7%. Fidelity D&D Bancorp pays out 35.5% of its earnings in the form of a dividend. Dacotah Banks pays out 19.7% 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. Fidelity D&D Bancorp has raised its dividend for 10 consecutive years. Fidelity D&D Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Fidelity D&D Bancorp has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Dacotah Banks has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500.

Institutional and Insider Ownership

20.1% of Fidelity D&D Bancorp shares are owned by institutional investors. 18.4% of Fidelity D&D Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Fidelity D&D Bancorp and Dacotah Banks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fidelity D&D Bancorp	19.03%	12.36%	0.98%
Dacotah Banks	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Fidelity D&D Bancorp and Dacotah Banks, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelity D&D Bancorp	0	1	0	0	2.00
Dacotah Banks	0	0	0	0	0.00

Summary

Fidelity D&D Bancorp beats Dacotah Banks on 11 of the 15 factors compared between the two stocks.

About Fidelity D&D Bancorp

Fidelity D&D Bancorp, Inc. is a holding company, which engages in the provision of commercial banking services. It operates through the following segments: Commercial and Industrial, Commercial Real Estate, Consumer, and Residential Real Estate. The Commercial and Industrial segment refers to identified historic and/or the projected cash flows of the borrower and secondarily to the underlying collateral provided by the borrower. The Commercial Real Estate segment offers finances purchase of real estate, refinance existing obligations, and/or to provide capital. The Consumer segment includes home equity installment loans and lines of credit. The Residential Real Estate segment operates as a secured first lien position of the borrower’s residential real estate. The company was founded in 1902 and is headquartered in Dunmore, PA.

About Dacotah Banks

Dacotah Banks, Inc. provides various banking and financial products and services to individuals and businesses. The company provides demand and certificates of deposit; checking, individual retirement, health savings, and money market accounts; and commercial, commercial real estate, residential mortgage, and consumer loans. It also offers vehicle, boat, motorhome, mortgage, camper, motorcycle, snowmobile, jet SKI, and ATV loans; and unsecured, overdraft protection, and student loans; business, term, and small business administration loans, and other loans. In addition, the company provides credit, debit, and gift cards; mobile and online banking; auto, homeowner, health, and life insurance products; and estate, and trust services. Further, the company offers retirement planning, investment management, foundation, endowment, bill paying, charitable giving, and elder care services, as well as cash management services. Additionally, it provides offers operating lines of credit, state and federal programs, and equipment loans and leases. It also provides crop, homeowner, health, life, farm, and ranch insurance services; and farm and ranch management services. The company operates across various locations in Minnesota, North Dakota, and South Dakota. Dacotah Banks, Inc. was founded in 1955 and is headquartered in Aberdeen, South Dakota.