Analyzing Dacotah Banks (OTCMKTS:DBIN) and HarborOne Bancorp (NASDAQ:HONE)

HarborOne Bancorp (NASDAQ:HONE) and Dacotah Banks (OTCMKTS:DBIN) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Valuation and Earnings

This table compares HarborOne Bancorp and Dacotah Banks”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HarborOne Bancorp	$170.00 million	3.07	$27.41 million	$0.65	18.62
Dacotah Banks	$248.97 million	1.74	$29.73 million	$3.76	10.37

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

Institutional and Insider Ownership

65.0% of HarborOne Bancorp shares are owned by institutional investors. 4.8% of HarborOne Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

HarborOne Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 3.0%. Dacotah Banks pays an annual dividend of $0.64 per share and has a dividend yield of 1.6%. HarborOne Bancorp pays out 55.4% of its earnings in the form of a dividend. Dacotah Banks pays out 17.0% 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. HarborOne Bancorp has raised its dividend for 5 consecutive years. HarborOne Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

HarborOne Bancorp has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, Dacotah Banks has a beta of -0.08, meaning that its stock price is 108% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for HarborOne Bancorp and Dacotah Banks, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HarborOne Bancorp	0	3	0	1	2.50
Dacotah Banks	0	0	0	0	0.00

HarborOne Bancorp presently has a consensus price target of $13.00, suggesting a potential upside of 7.44%. Given HarborOne Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe HarborOne Bancorp is more favorable than Dacotah Banks.

Profitability

This table compares HarborOne Bancorp and Dacotah Banks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HarborOne Bancorp	8.43%	4.66%	0.47%
Dacotah Banks	N/A	N/A	N/A

Summary

HarborOne Bancorp beats Dacotah Banks on 13 of the 17 factors compared between the two stocks.

About HarborOne Bancorp

HarborOne Bancorp, Inc. operates as the holding company for HarborOne Bank that provides financial services to individuals, families, small and mid-size businesses, and municipalities. The company operates in two segments, HarborOne Bank and HarborOne Mortgage. Its primary deposit products include checking, money market, savings, and term certificate of deposit accounts; and primary lending products comprise commercial real estate, commercial, residential mortgages, home equity, and consumer loans. The company also originates, sells, and services residential mortgage loans. In addition, it provides various educational services, such as free digital content, webinars, and recordings for small business and personal financial education under the HarborOne U name. The company operates through a network of full-service branches located in Massachusetts and Rhode Island, as well as commercial lending offices in each of Boston, Massachusetts, and Providence, Rhode Island, as well as administrative offices in Brockton, Massachusetts, as well as ATM locations in Massachusetts. HarborOne Bancorp, Inc. was founded in 1917 and is headquartered in Brockton, Massachusetts.

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.