Dacotah Banks (OTCMKTS:DBIN) & M&T Bank (NYSE:MTB) Critical Analysis

Dacotah Banks (OTCMKTS:DBIN) and M&T Bank (NYSE:MTB) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Dividends

Dacotah Banks pays an annual dividend of $0.60 per share and has a dividend yield of 1.8%. M&T Bank pays an annual dividend of $5.40 per share and has a dividend yield of 2.7%. Dacotah Banks pays out 25.1% of its earnings in the form of a dividend. M&T Bank pays out 36.9% 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 Dacotah Banks and M&T Bank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dacotah Banks	$199.04 million	1.89	$26.17 million	$2.39	14.12
M&T Bank	$13.45 billion	2.46	$2.59 billion	$14.63	13.61

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

Risk and Volatility

Dacotah Banks has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, M&T Bank has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Dacotah Banks and M&T Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dacotah Banks	0	0	0	0	0.00
M&T Bank	1	8	8	0	2.41

M&T Bank has a consensus price target of $221.68, indicating a potential upside of 11.35%. Given M&T Bank’s stronger consensus rating and higher possible upside, analysts plainly believe M&T Bank is more favorable than Dacotah Banks.

Profitability

This table compares Dacotah Banks and M&T Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dacotah Banks	11.04%	N/A	N/A
M&T Bank	19.24%	10.12%	1.25%

Insider & Institutional Ownership

84.7% of M&T Bank shares are owned by institutional investors. 0.8% of M&T Bank shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

M&T Bank beats Dacotah Banks on 14 of the 16 factors compared between the two stocks.

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.

About M&T Bank

M&T Bank Corp. operates as a bank holding company, which engages in the provision of retail and commercial banking, trust, wealth management and investment services. It operates through the following segments: Business Banking, Commercial Banking, Commercial Real Estate, Discretionary Portfolio, Residential Mortgage Banking, and Retail Banking. The Business Banking segment provides services to small businesses and professionals through the company’s branch network, business banking centers, and other delivery channels such as telephone banking, Internet banking and automated teller machines. The Commercial Banking segment offers credit products and banking services for middle-market and large commercial customers. The Commercial Real Estate segment includes credit and deposit services to its customers. The Discretionary Portfolio segment consists of investment and trading securities, residential mortgage loans and other assets, short-term and long-term borrowed funds, brokered certificates of deposit and interest rate swap agreements related thereto, and Cayman Islands branch deposits. The Residential Mortgage Banking segment consists of residential mortgage loans and sells substantially all of those loans in the secondary market to investors. The Retail Banking segment offers services to consumers through several delivery channels which include branch offices, automated teller machines, telephone banking, and Internet banking. The company was founded on August 30, 1856, and is headquartered in Buffalo, NY.