Head-To-Head Comparison: Plumas Bancorp (NASDAQ:PLBC) versus Ames National (NASDAQ:ATLO)

Plumas Bancorp (NASDAQ:PLBC) and Ames National (NASDAQ:ATLO) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Plumas Bancorp	27.39%	15.41%	1.80%
Ames National	22.64%	11.08%	1.08%

Risk & Volatility

Plumas Bancorp has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Ames National has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Plumas Bancorp and Ames National, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Plumas Bancorp	0	0	4	0	3.00
Ames National	0	2	1	0	2.33

Plumas Bancorp presently has a consensus price target of $66.33, suggesting a potential upside of 5.78%. Ames National has a consensus price target of $31.00, suggesting a potential downside of 2.85%. Given Plumas Bancorp’s stronger consensus rating and higher probable upside, research analysts plainly believe Plumas Bancorp is more favorable than Ames National.

Dividends

Plumas Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 2.1%. Ames National pays an annual dividend of $0.96 per share and has a dividend yield of 3.0%. Plumas Bancorp pays out 26.0% of its earnings in the form of a dividend. Ames National pays out 37.2% 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. Plumas Bancorp has increased its dividend for 1 consecutive years.

Insider and Institutional Ownership

41.7% of Plumas Bancorp shares are held by institutional investors. Comparatively, 26.5% of Ames National shares are held by institutional investors. 7.4% of Plumas Bancorp shares are held by insiders. Comparatively, 2.3% of Ames National shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Plumas Bancorp and Ames National”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Plumas Bancorp	$112.17 million	3.89	$29.62 million	$5.08	12.34
Ames National	$98.26 million	2.88	$19.03 million	$2.58	12.37

Plumas Bancorp has higher revenue and earnings than Ames National. Plumas 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.

Summary

Plumas Bancorp beats Ames National on 15 of the 17 factors compared between the two stocks.

About Plumas Bancorp

Plumas Bancorp operates as the bank holding company for the Plumas Bank that provides various banking products and services for small and middle market businesses, and individuals in Northeastern California and Northwestern Nevada. The company accepts various deposits, such as checking, money market checking, business sweep, public funds sweep, savings, time deposit, and retirement accounts. Its loan portfolio comprises of term real estate, commercial, and industrial term loans; government-guaranteed and agricultural loans, as well as credit lines; consumer, automobile, and home equity loans; land development and construction loans; and small business administration loans. In addition, the company provides remote deposit, telephone and mobile banking, internet banking with bill-pay options, cashier's check, bank-by-mail, automated teller machine, night depository, safe deposit box, direct deposit, electronic funds transfer, and other customary banking services. Plumas Bancorp was founded in 1980 and is headquartered in Reno, Nevada.

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.