Ames National Corporation (ATLO) vs Franklin Financial Services Corp. (FRAF)

Ames National Corporation and Franklin Financial Services Corp. are both Banks Regional companies. Ames National Corporation and Franklin Financial Services Corp. are of similar size ($281.8M and $280.1M). Franklin Financial Services Corp. trades at the lower P/E: 11.4× against 12.3×. Franklin Financial Services Corp. grew revenue faster over the last twelve months: 9.78% against 7.03%. Ames National Corporation has the higher net margin (22.6% vs 18.2%) and the higher return on invested capital (18.7% vs 10.7%). Both pay a dividend; Ames National Corporation yields more (5.90% vs 4.49%). Across the 20 metrics below, Franklin Financial Services Corp. leads on 13 and Ames National Corporation on 7.

Valuation

Metric ATLO FRAF Banks Regional median
P/E 12.33 11.41 12.15
P/S 2.78 2.08 2.37
P/B 1.32 1.53 1.21
Price to free cash flow 11.56 6.73 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.69 2.04 2.27
Earnings yield 8.11% 8.76% 8.11%
Free cash flow yield 8.65% 14.87% 8.98%

Profitability

Metric ATLO FRAF Banks Regional median
Gross margin 71.52% 69.92% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 22.64% 18.20% 18.66%
Free cash flow margin 24.03% 30.90% 21.18%
Return on equity 11.31% 14.45% 10.64%
Return on assets 1.09% 1.07% 1.13%
Return on invested capital 18.74% 10.71% 8.33%

Growth

Metric ATLO FRAF Banks Regional median
Revenue growth (TTM) 7.03% 9.78% 6.61%
EPS growth (last fiscal year) 87.72% 88.84% —
Revenue growth, 5-year CAGR 5.96% 16.96% 12.30%
Net income growth, 5-year CAGR 0.19% 10.64% 9.71%

Health

Metric ATLO FRAF Banks Regional median
Debt to equity 0.00 1.09 0.22
Current ratio 0.72 0.93 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric ATLO FRAF Banks Regional median
Dividend yield 5.90% 4.49% 3.75%
Payout ratio 0.62 0.39 0.27

Size

Metric ATLO FRAF Banks Regional median
Market cap 281.75m 280.14m 921.07m

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