Contrasting American Bank (OTCMKTS:AMBK) and Hawthorn Bancshares (NASDAQ:HWBK)

Profitability

This table compares Hawthorn Bancshares and American Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hawthorn Bancshares	5.67%	4.46%	0.34%
American Bank	N/A	N/A	N/A

Risk and Volatility

Hawthorn Bancshares has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, American Bank has a beta of 0.03, indicating that its share price is 97% less volatile than the S&P 500.

Valuation and Earnings

This table compares Hawthorn Bancshares and American Bank”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hawthorn Bancshares	$60.47 million	3.28	$960,000.00	$0.90	31.50
American Bank	$40.89 million	2.64	$9.31 million	N/A	N/A

American Bank has lower revenue, but higher earnings than Hawthorn Bancshares.

Dividends

Hawthorn Bancshares pays an annual dividend of $0.76 per share and has a dividend yield of 2.7%. American Bank pays an annual dividend of $0.56 per share and has a dividend yield of 3.4%. Hawthorn Bancshares pays out 84.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional & Insider Ownership

30.7% of Hawthorn Bancshares shares are held by institutional investors. 23.4% of Hawthorn Bancshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Hawthorn Bancshares beats American Bank on 8 of the 11 factors compared between the two stocks.

About Hawthorn Bancshares

Hawthorn Bancshares, Inc. operates as the bank holding company for Hawthorn Bank that provides various banking services in the United States. It accepts checking, savings, money market, individual retirement, and other time deposit accounts, as well as certificates of deposit. The company also offers commercial and industrial, single payment personal, installment, commercial and residential real estate, and consumer loans, as well as equipment, operating, and small business administration loans; and debit and credit cards. In addition, it provides trust services that include estate planning, investment, and asset management services; and cash management, safety deposit box, brokerage, and Internet banking services. Hawthorn Bancshares, Inc. was founded in 1865 and is headquartered in Jefferson City, Missouri.

About American Bank

American Bank Incorporated operates as the bank holding company for American Bank that provides various banking products and services to consumer, business, institutional, and governmental customers. It accepts a range of interest-bearing checking and money market accounts, savings accounts, certificates of deposit, and individual retirement accounts. The company also offers commercial, industrial, and other loans; commercial mortgage loans; commercial construction loans; residential mortgage loans; and consumer loans, including personal term loans, personal credit lines, automobile loans, home equity loans, and home equity lines of credit and loans. In addition, it provides online or mobile banking, automated teller machine, safe deposit box rental, and wire transfer services, as well as sells checks and checkbooks, and purchases investment securities. The company operates an office located in Allentown, Pennsylvania; and a loan production office in Blue Bell, Pennsylvania. The company was founded in 1997 and is based in Allentown, Pennsylvania.