Ames National (NASDAQ:ATLO) versus Pathward Financial (NASDAQ:CASH) Head-To-Head Review

Pathward Financial (NASDAQ:CASH) and Ames National (NASDAQ:ATLO) 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, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Valuation & Earnings

This table compares Pathward Financial and Ames National”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pathward Financial	$600.62 million	3.13	$168.36 million	$6.86	11.51
Ames National	$54.81 million	2.82	$10.22 million	$1.27	13.66

Pathward Financial has higher revenue and earnings than Ames National. Pathward Financial is trading at a lower price-to-earnings ratio than Ames National, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Pathward Financial and Ames National, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pathward Financial	0	1	1	0	2.50
Ames National	0	0	0	0	0.00

Pathward Financial presently has a consensus target price of $92.00, indicating a potential upside of 16.53%. Given Pathward Financial’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Pathward Financial is more favorable than Ames National.

Institutional & Insider Ownership

92.7% of Pathward Financial shares are held by institutional investors. Comparatively, 26.5% of Ames National shares are held by institutional investors. 1.2% of Pathward Financial shares are held by company insiders. Comparatively, 2.1% of Ames National shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pathward Financial	21.91%	22.02%	2.28%
Ames National	11.05%	5.94%	0.48%

Dividends

Pathward Financial pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Ames National pays an annual dividend of $0.80 per share and has a dividend yield of 4.6%. Pathward Financial pays out 2.9% of its earnings in the form of a dividend. Ames National pays out 63.0% 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.

Volatility and Risk

Pathward Financial has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, Ames National has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.

Summary

Pathward Financial beats Ames National on 12 of the 16 factors compared between the two stocks.

About Pathward Financial

Pathward Financial, Inc. operates as the bank holding company for Pathward, National Association that provides various banking products and services in the United States. The company operates through three segments: Consumer, Commercial, and Corporate Services/Other. It offers demand deposit accounts, savings accounts, and money market savings accounts. The company also provides commercial finance product comprising term lending, asset-based lending, factoring, lease financing, insurance premium finance, government guaranteed lending, and other commercial finance products; consumer credit products; other consumer financing services; tax services, which includes short-term refund advance loans and short-term electronic return originator advance loans; and warehouse financing services. In addition, it issues prepaid cards; and offers payment solutions, such as acceptance, processing, and settlement of credit card and debit card payments. The company was formerly known as Meta Financial Group, Inc. and changed its name to Pathward Financial, Inc. in July 2022. Pathward Financial, Inc. was founded in 1954 and is based in Sioux Falls, South Dakota.

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.