Head-To-Head Survey: Dacotah Banks (OTCMKTS:DBIN) and M&T Bank (NYSE:MTB)

Dacotah Banks (OTCMKTS:DBIN) and M&T Bank (NYSE:MTB) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Risk & Volatility

Dacotah Banks has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, M&T Bank has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Dacotah Banks and M&T Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dacotah Banks	0	0	0	0	0.00
M&T Bank	1	8	8	0	2.41

M&T Bank has a consensus target price of $221.68, indicating a potential upside of 11.35%. Given M&T Bank’s stronger consensus rating and higher probable upside, analysts clearly believe M&T Bank is more favorable than Dacotah Banks.

Dividends

Dacotah Banks pays an annual dividend of $0.60 per share and has a dividend yield of 1.8%. M&T Bank pays an annual dividend of $5.40 per share and has a dividend yield of 2.7%. Dacotah Banks pays out 25.1% of its earnings in the form of a dividend. M&T Bank pays out 36.9% 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.

Institutional and Insider Ownership

84.7% of M&T Bank shares are held by institutional investors. 0.8% of M&T Bank shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Dacotah Banks and M&T Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dacotah Banks	$199.04 million	1.89	$26.17 million	$2.39	14.12
M&T Bank	$13.45 billion	2.46	$2.59 billion	$14.63	13.61

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

Profitability

This table compares Dacotah Banks and M&T Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dacotah Banks	11.04%	N/A	N/A
M&T Bank	19.24%	10.12%	1.25%

Summary

M&T Bank beats Dacotah Banks on 14 of the 16 factors compared between the two stocks.

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.

About M&T Bank

M&T Bank Corp. operates as a bank holding company, which engages in the provision of retail and commercial banking, trust, wealth management and investment services. It operates through the following segments: Business Banking, Commercial Banking, Commercial Real Estate, Discretionary Portfolio, Residential Mortgage Banking, and Retail Banking. The Business Banking segment provides services to small businesses and professionals through the company’s branch network, business banking centers, and other delivery channels such as telephone banking, Internet banking and automated teller machines. The Commercial Banking segment offers credit products and banking services for middle-market and large commercial customers. The Commercial Real Estate segment includes credit and deposit services to its customers. The Discretionary Portfolio segment consists of investment and trading securities, residential mortgage loans and other assets, short-term and long-term borrowed funds, brokered certificates of deposit and interest rate swap agreements related thereto, and Cayman Islands branch deposits. The Residential Mortgage Banking segment consists of residential mortgage loans and sells substantially all of those loans in the secondary market to investors. The Retail Banking segment offers services to consumers through several delivery channels which include branch offices, automated teller machines, telephone banking, and Internet banking. The company was founded on August 30, 1856, and is headquartered in Buffalo, NY.