Ames National (NASDAQ:ATLO) & First Financial Bancorp. (NASDAQ:FFBC) Head-To-Head Survey

First Financial Bancorp. (NASDAQ:FFBC) and Ames National (NASDAQ:ATLO) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Earnings and Valuation

This table compares First Financial Bancorp. and Ames National”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Financial Bancorp.	$1.26 billion	2.71	$255.60 million	$2.85	11.40
Ames National	$72.56 million	4.15	$19.03 million	$2.87	11.86

First Financial Bancorp. has higher revenue and earnings than Ames National. First Financial 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for First Financial Bancorp. and Ames National, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Financial Bancorp.	0	2	5	0	2.71
Ames National	0	1	1	1	3.00

First Financial Bancorp. currently has a consensus target price of $34.33, indicating a potential upside of 5.64%. Ames National has a consensus target price of $31.00, indicating a potential downside of 8.93%. Given First Financial Bancorp.’s higher probable upside, research analysts plainly believe First Financial Bancorp. is more favorable than Ames National.

Dividends

First Financial Bancorp. pays an annual dividend of $1.04 per share and has a dividend yield of 3.2%. Ames National pays an annual dividend of $0.96 per share and has a dividend yield of 2.8%. First Financial Bancorp. pays out 36.5% of its earnings in the form of a dividend. Ames National pays out 33.4% 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. First Financial Bancorp. has increased its dividend for 1 consecutive years. First Financial Bancorp. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

77.2% of First Financial Bancorp. shares are held by institutional investors. Comparatively, 26.5% of Ames National shares are held by institutional investors. 1.1% of First Financial 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 is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Financial Bancorp.	20.80%	11.44%	1.49%
Ames National	24.44%	12.15%	1.19%

Volatility and Risk

First Financial Bancorp. has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Ames National has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500.

About First Financial Bancorp.

First Financial Bancorp. operates as the bank holding company for First Financial Bank that provides commercial banking and related services to individuals and businesses in Ohio, Indiana, Kentucky, and Illinois. The company offers checking, savings, and money-market accounts; and accepts various deposit products, such as interest-bearing and non-interest-bearing accounts, time deposits, and cash management services for commercial customers. It also provides real estate loans secured by residential property, such as one to four family residential housing units or commercial property comprising owner-occupied and/or investor income producing real estate consisting of apartments, shopping centers, and office buildings; commercial and industrial loans for various purposes, including inventory, receivables, and equipment, as well as equipment and leasehold improvement financing for franchisees; consumer loans comprising new and used vehicle loans, second mortgages on residential real estate, and unsecured loans; and home equity lines of credit. In addition, the company offers commercial financing to the insurance industry, registered investment advisors, certified public accountants, indirect auto finance companies, and restaurant franchisees. Further, it provides a range of trust and wealth management services; lease and equipment financing services; and currency payments, foreign exchange hedging, and other advisory products. First Financial Bancorp. was founded in 1863 and is headquartered in Cincinnati, Ohio.

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.