Shinhan Financial Group (NYSE:SHG – Get Free Report) and Ames National (NASDAQ:ATLO – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.
Analyst Ratings
This is a breakdown of recent recommendations for Shinhan Financial Group and Ames National, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shinhan Financial Group | 0 | 0 | 1 | 1 | 3.50 |
| Ames National | 0 | 1 | 1 | 1 | 3.00 |
Ames National has a consensus price target of $31.00, suggesting a potential downside of 7.82%. Given Ames National’s higher probable upside, analysts clearly believe Ames National is more favorable than Shinhan Financial Group.
Dividends
Shinhan Financial Group pays an annual dividend of $1.71 per share and has a dividend yield of 2.7%. Ames National pays an annual dividend of $0.96 per share and has a dividend yield of 2.9%. Shinhan Financial Group pays out 22.2% 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.
Valuation & Earnings
This table compares Shinhan Financial Group and Ames National”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Shinhan Financial Group | $23.83 billion | 1.25 | $3.48 billion | $7.72 | 8.19 |
| Ames National | $98.26 million | 3.03 | $19.03 million | $2.87 | 11.72 |
Shinhan Financial Group has higher revenue and earnings than Ames National. Shinhan Financial Group is trading at a lower price-to-earnings ratio than Ames National, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Shinhan Financial Group and Ames National’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Shinhan Financial Group | 15.68% | 8.81% | 0.67% |
| Ames National | 24.44% | 12.15% | 1.19% |
Volatility and Risk
Shinhan Financial Group has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Ames National has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500.
Insider and Institutional Ownership
7.8% of Shinhan Financial Group shares are owned by institutional investors. Comparatively, 26.5% of Ames National shares are owned by institutional investors. 1.0% of Shinhan Financial Group shares are owned by company insiders. Comparatively, 2.3% of Ames National shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Ames National beats Shinhan Financial Group on 9 of the 15 factors compared between the two stocks.
About Shinhan Financial Group
Shinhan Financial Group Co., Ltd. provides financial products and services in South Korea and internationally. The company operates through six segments: Banking, Credit Card, Securities, Insurance, Credit, and Others. It offers retail banking services, including demand, savings, and fixed deposit-taking; checking accounts; mortgage and home equity, and retail lending; electronic banking and automatic teller machines (ATM); and bill paying, payroll and check-cashing, currency exchange, and wire fund transfer services. The company also provides corporate banking services, such as investment banking, real estate financing, overseas real estate and development project financing, infrastructure and structured financing, equity/venture investments, mergers and acquisitions consulting; securitization and derivatives services comprising securities and derivative products, and foreign exchange trading; business expansion financing and consulting services; and working capital loans and facilities loans. In addition, it is involved in treasury and investment activities in international capital markets consisting of foreign currency-denominated securities trading, foreign exchange trading and services, trade-related financial services, international factoring services, and foreign banking operations. Further, the company offers real estate trust, investment advisory, venture business investment, life and non-life insurance, trust account management, securities brokerage, and asset management services, as well as leasing and equipment financing, savings banking, loan collection and credit reporting, collective investment administration, private equity investment, and financial system development services. Additionally, it provides transaction history inquiries and fund transfers, opening letters of credit, trade finance, payment and collection management, sales and acquisition settlement, business-to-business settlement, sweeping, pooling, ERP interface, host-to-host banking, SWIFT SCORE, and cash and liquidity management service. Shinhan Financial Group Co., Ltd. was founded in 1982 and is headquartered in Seoul, South Korea.
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.
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