Financial Analysis: American National BankShares (NASDAQ:AMNB) & Landmark Bancorp (NASDAQ:LARK)

American National BankShares (NASDAQ:AMNB) and Landmark Bancorp (NASDAQ:LARK) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Profitability

This table compares American National BankShares and Landmark Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American National BankShares 27.24% 10.73% 1.28%
Landmark Bancorp 21.08% 11.62% 1.08%

Dividends

American National BankShares pays an annual dividend of $1.00 per share and has a dividend yield of 2.8%. Landmark Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 3.4%. American National BankShares pays out 37.2% of its earnings in the form of a dividend. American National BankShares has raised its dividend for 3 consecutive years and Landmark Bancorp has raised its dividend for 3 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings for American National BankShares and Landmark Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American National BankShares 0 0 2 0 3.00
Landmark Bancorp 0 0 0 0 N/A

American National BankShares currently has a consensus target price of $41.50, suggesting a potential upside of 16.84%. Given American National BankShares’ higher probable upside, equities research analysts clearly believe American National BankShares is more favorable than Landmark Bancorp.

Institutional and Insider Ownership

31.5% of American National BankShares shares are held by institutional investors. Comparatively, 19.5% of Landmark Bancorp shares are held by institutional investors. 5.0% of American National BankShares shares are held by insiders. Comparatively, 18.1% of Landmark Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

American National BankShares has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Landmark Bancorp has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.

Earnings & Valuation

This table compares American National BankShares and Landmark Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American National BankShares $82.04 million 4.84 $22.58 million $2.69 13.20
Landmark Bancorp $48.72 million 2.10 $10.43 million N/A N/A

American National BankShares has higher revenue and earnings than Landmark Bancorp.

Summary

American National BankShares beats Landmark Bancorp on 10 of the 14 factors compared between the two stocks.

About American National BankShares

American National Bankshares Inc. operates as the bank holding company for American National Bank and Trust Company that provides financial products and services. The company operates through two segments, Community Banking, and Trust and Investment Services. It accepts deposit products, including checking, money market, savings, and consumer and commercial time deposits, as well as certificates of deposit. The company's loan products comprise commercial and residential real estate loans, commercial loans to small and medium-sized businesses, construction and land development loans, home equity loans, mortgage loans, and consumer loans. It also offers trust and investment services, such as estate planning, trust account administration, investment management, and retail brokerage services; online and telephone banking services; insurance services; and investment management services, including purchasing equity, fixed income, and mutual fund investments for customer accounts, as well as operates 34 automated teller machines. As of December 31, 2018, it operated 24 banking offices and 2 loan production offices in Roanoke, Virginia and Raleigh, North Carolina. American National Bankshares Inc. was founded in 1909 and is headquartered in Danville, Virginia.

About Landmark Bancorp

Landmark Bancorp, Inc. operates as the bank holding company for Landmark National Bank that provides various financial and banking services. The company offers checking, savings, and money market accounts, as well as certificates of deposit. It also provides various loan products, such as one-to-four family residential real estate, construction and land, commercial real estate, commercial, municipal, and agriculture loans, as well as consumer and other loans, including automobile, boat, home improvement, and home equity loans. As of December 31, 2018, the company had 29 branch offices in 23 communities across the state of Kansas. Landmark Bancorp, Inc. was founded in 1885 and is headquartered in Manhattan, Kansas.

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