Critical Contrast: Dacotah Banks (OTCMKTS:DBIN) and Ohio Valley Banc (NASDAQ:OVBC)

Dividends

Ohio Valley Banc pays an annual dividend of $0.88 per share and has a dividend yield of 3.3%. Dacotah Banks pays an annual dividend of $0.60 per share and has a dividend yield of 1.7%. Ohio Valley Banc pays out 35.6% of its earnings in the form of a dividend. Dacotah Banks pays out 25.1% 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.

Insider & Institutional Ownership

22.1% of Ohio Valley Banc shares are held by institutional investors. 5.3% of Ohio Valley Banc shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Ohio Valley Banc and Dacotah Banks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ohio Valley Banc	13.66%	7.97%	0.83%
Dacotah Banks	11.04%	N/A	N/A

Risk & Volatility

Ohio Valley Banc has a beta of 0.03, indicating that its stock price is 97% less volatile than the S&P 500. Comparatively, Dacotah Banks has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.

Earnings & Valuation

This table compares Ohio Valley Banc and Dacotah Banks”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ohio Valley Banc	$59.88 million	2.12	$12.63 million	$2.47	10.93
Dacotah Banks	$199.04 million	1.97	$26.17 million	$2.39	14.64

Dacotah Banks has higher revenue and earnings than Ohio Valley Banc. Ohio Valley Banc is trading at a lower price-to-earnings ratio than Dacotah Banks, indicating that it is currently the more affordable of the two stocks.

Summary

Ohio Valley Banc beats Dacotah Banks on 8 of the 13 factors compared between the two stocks.

About Ohio Valley Banc

Ohio Valley Banc Corp. operates as the bank holding company for The Ohio Valley Bank Company that provides commercial and consumer banking products and services. The company operates in two segments, Banking and Consumer Finance. It accepts various deposit products, including checking, savings, time, and money market accounts, as well as individual retirement accounts, demand deposits, NOW accounts, and certificates of deposit. The company also provides various residential real estate loans, including one-to four-family residential mortgages; commercial loans for securing equipment, inventory, stock, commercial real estate, and rental property; and consumer loans secured by automobiles, mobile homes, recreational vehicles, and other personal property, as well as personal loans, unsecured credit card receivables, floor plan and student loans, and construction loans. In addition, it offers safe deposit box, wire transfer, credit card, home equity loans, and Internet banking services; and financial management online services, such as cash management and news updates related to repossession auctions, current rates, and general bank news. Further, the company provides automatic teller machines (ATMs), consumer finance, seasonal tax preparation, commercial property, and various liability insurance services, as well as trust and online-only consumer direct mortgage services. The company owns and operates ATMs, including off-site ATMs. It operates offices in Ohio and West Virginia. The company was founded in 1872 and is based in Gallipolis, Ohio.

About Dacotah Banks

Dacotah Banks, Inc. provides various banking and financial products and services to individuals and businesses. The company provides demand and certificates of deposit; checking, individual retirement, health savings, and money market accounts; and commercial, commercial real estate, residential mortgage, and consumer loans. It also offers vehicle, boat, motorhome, mortgage, camper, motorcycle, snowmobile, jet SKI, and ATV loans; and unsecured, overdraft protection, and student loans; business, term, and small business administration loans, and other loans. In addition, the company provides credit, debit, and gift cards; mobile and online banking; auto, homeowner, health, and life insurance products; and estate, and trust services. Further, the company offers retirement planning, investment management, foundation, endowment, bill paying, charitable giving, and elder care services, as well as cash management services. Additionally, it provides offers operating lines of credit, state and federal programs, and equipment loans and leases. It also provides crop, homeowner, health, life, farm, and ranch insurance services; and farm and ranch management services. The company operates across various locations in Minnesota, North Dakota, and South Dakota. Dacotah Banks, Inc. was founded in 1955 and is headquartered in Aberdeen, South Dakota.