ATLO vs HFWA

For growth investors, Ames National Corporation (ATLO) is the stronger pick with 6.

3% revenue growth year-over-year, versus 5. 9% for Heritage Financial Corporation (HFWA). Ames National Corporation (ATLO) offers the better valuation at 13. 4x trailing P/E (10. 6x forward), making it the more compelling value choice. Analysts rate Heritage Financial Corporation (HFWA) a "Buy" — based on 14 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Ames National Corporation (ATLO) is the cheapest at 13.

4x versus Heritage Financial Corporation at 14. 0x. On forward P/E, Ames National Corporation is actually cheaper at 10. 6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Heritage Financial Corporation wins at 1. 53x versus Ames National Corporation's 13. 85x — a reasonable growth-adjusted valuation.

Over the past 5 years, Ames National Corporation (ATLO) delivered a total return of +31.

6%, compared to +10. 4% for Heritage Financial Corporation (HFWA). Over 10 years, the gap is even starker: HFWA returned +109. 7% versus ATLO's +48. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Ames National Corporation (ATLO) is the lower-risk stock at 0.

64β versus Heritage Financial Corporation's 0. 97β — meaning HFWA is approximately 53% more volatile than ATLO relative to the S&P 500. On balance sheet safety, Heritage Financial Corporation (HFWA) carries a lower debt/equity ratio of 5% versus 29% for Ames National Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Ames National Corporation (ATLO) is pulling ahead at 6.

3% versus 5. 9% for Heritage Financial Corporation (HFWA). On earnings-per-share growth, the picture is similar: Ames National Corporation grew EPS 87. 7% year-over-year, compared to 58. 1% for Heritage Financial Corporation. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Heritage Financial Corporation (HFWA) is the more profitable company, earning 20.

1% net margin versus 19. 4% for Ames National Corporation — meaning it keeps 20. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ATLO leads at 23. 6% versus 23. 2% for HFWA. At the gross margin level — before operating expenses — HFWA leads at 72. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Heritage Financial Corporation (HFWA) is the more undervalued stock at a PEG of 1. 53x versus Ames National Corporation's 13. 85x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Ames National Corporation (ATLO) trades at 10. 6x forward P/E versus 13. 3x for Heritage Financial Corporation — 2. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HFWA: 14. 3% to $31. 33.

All stocks in this comparison pay dividends.

Heritage Financial Corporation (HFWA) offers the highest yield at 3. 5%, versus 2. 8% for Ames National Corporation (ATLO).

For long-horizon retirement investors, Ames National Corporation (ATLO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

64), 2. 8% yield). Both have compounded well over 10 years (ATLO: +48. 5%, HFWA: +109. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.