Comparing Ottawa Bancorp (OTCMKTS:OTTW) & Trinity Bank, N.A. (OTCMKTS:TYBT)

Trinity Bank, N.A. (OTCMKTS:TYBT) and Ottawa Bancorp (OTCMKTS:OTTW) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Trinity Bank, N.A. and Ottawa Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trinity Bank, N.A.	0	0	0	0	N/A
Ottawa Bancorp	0	0	0	0	N/A

Dividends

Trinity Bank, N.A. pays an annual dividend of $1.76 per share and has a dividend yield of 2.1%. Ottawa Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 3.3%. Trinity Bank, N.A. pays out 24.6% of its earnings in the form of a dividend. Ottawa Bancorp pays out 73.3% 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.

Profitability

This table compares Trinity Bank, N.A. and Ottawa Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trinity Bank, N.A.	29.77%	N/A	N/A
Ottawa Bancorp	8.95%	3.61%	0.41%

Valuation and Earnings

This table compares Trinity Bank, N.A. and Ottawa Bancorp’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trinity Bank, N.A.	$24.78 million	3.66	$8.02 million	$7.14	11.76
Ottawa Bancorp	$16.45 million	2.05	$1.67 million	$0.60	22.25

Trinity Bank, N.A. has higher revenue and earnings than Ottawa Bancorp. Trinity Bank, N.A. is trading at a lower price-to-earnings ratio than Ottawa Bancorp, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Trinity Bank, N.A. has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500. Comparatively, Ottawa Bancorp has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.

Summary

Trinity Bank, N.A. beats Ottawa Bancorp on 6 of the 11 factors compared between the two stocks.

About Trinity Bank, N.A.

Trinity Bank, N.A. provides personal and business banking products and services in Texas. It provides personal and business deposits, such as checking and money market accounts; treasury tax and loan deposits; mobile deposits; certificates of deposit; and automobile, secured/unsecured, home improvement, lots and interim construction, installment/term, equipment, and real estate loans, as well as revolving lines of credit. The company also offers cash management, internet and mobile banking, remote capture, CD ROM delivery, foreign and domestic wire transfer, and bill pay services, as well as ATM or Visa check cards, merchant cards, and debit cards. Trinity Bank, N.A. was founded in 2003 and is based in Fort Worth, Texas.

About Ottawa Bancorp

Ottawa Bancorp, Inc. operates as the bank holding company for OSB Community Bank, a savings bank that provides various financial services to individual and corporate customers in Illinois. The company's deposit products include saving, checking, money market, and interest-bearing accounts, as well as certificate of deposit. Its loan portfolio comprises commercial, non-residential real estate, one-to-four family residential, multi-family residential, consumer direct, and purchased auto loans; business and construction loans; motor vehicle, home improvement, share, and personal unsecured loans, as well as home equity and small personal credit lines; mortgage loans; and student loans. The company also provides cash management solutions, such as remote deposit capture, automated clearing house/payroll direct deposit, and merchant services, as well as commercial leasing services. In addition, it offers notary, lamination, night depository, document faxing, money gift envelopes, safe deposit boxes, and coin counting, as well as debit and credit cards, and digital banking services. The company was formerly known as Ottawa Savings Bancorp, Inc. and changed its name to Ottawa Bancorp, Inc. in October 2016. Ottawa Bancorp, Inc. was founded in 1871 and is based in Ottawa, Illinois.