Pinnacle Bank (OTCMKTS:PBNK) versus ACNB (NASDAQ:ACNB) Financial Survey

ACNB (NASDAQ:ACNB) and Pinnacle Bank (OTCMKTS:PBNK) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Institutional & Insider Ownership

32.4% of ACNB shares are held by institutional investors. Comparatively, 8.4% of Pinnacle Bank shares are held by institutional investors. 3.5% of ACNB shares are held by 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.

Volatility and Risk

ACNB has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Pinnacle Bank has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500.

Earnings and Valuation

This table compares ACNB and Pinnacle Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ACNB	$132.20 million	3.80	$31.85 million	$3.27	14.78
Pinnacle Bank	$53.91 million	2.12	$8.85 million	$0.86	22.44

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

Profitability

This table compares ACNB and Pinnacle Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ACNB	18.47%	11.58%	1.42%
Pinnacle Bank	16.62%	8.37%	0.97%

Analyst Recommendations

This is a summary of recent recommendations for ACNB and Pinnacle Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ACNB	0	1	2	1	3.00
Pinnacle Bank	0	0	0	0	0.00

ACNB currently has a consensus price target of $48.67, indicating a potential upside of 0.70%. Given ACNB’s stronger consensus rating and higher probable upside, equities research analysts plainly believe ACNB is more favorable than Pinnacle Bank.

Summary

ACNB beats Pinnacle Bank on 14 of the 15 factors compared between the two stocks.

About ACNB

ACNB Corporation, a financial holding company, offers banking, insurance, and financial services to individual, business, and government customers in the United States. The company provides checking, savings, and money market deposit accounts, as well as time deposits and debit cards. It also offers commercial lending products, such as commercial mortgages, real estate development and construction loans, accounts receivable and inventory financing, and agricultural and governmental loans; consumer lending products, including home equity loans and lines of credit, automobile and recreational vehicle loans, manufactured housing loans, and personal lines of credit; and mortgage lending programs include personal residential mortgages, and residential construction and investment mortgage loans. In addition, the company provides other services that are related to testamentary trusts, life insurance trusts, charitable remainder trusts, guardianships, powers of attorney, custodial accounts, and investment management and advisory accounts; and retail brokerage services. Further, it acts as a trustee to invest in, protect, manage, and distribute financial assets. Additionally, the company offers property and casualty, health, life, and disability insurance products to commercial and personal clients; and online, telephone, and mobile banking, as well as automated teller machine services. ACNB Corporation was founded in 1857 and is headquartered in Gettysburg, Pennsylvania.

About Pinnacle Bank

Pinnacle Bank, a commercial bank, provides various depository and credit services in Santa Clara, San Benito, and Monterey counties. The company offers checking, savings, money market, sweep, and individual retirement accounts, as well as certificates of deposit and certificates of deposit account registry services. It also provides home equity lines of credit and single family home construction loans; and loans and lines of credit, letters of credit, commercial real estate, and government assisted loans, as well as credit cards. In addition, the company offers automated teller machine cards/debit cards, debit card protection products, and safe deposit boxes; cash management products, such as online and mobile banking, online bill payment, mobile check deposit, automated clearing house (ACH) origination, remote deposit capture, night depository box, positive pay, ACH fraud filter, merchant card processing, wire transfer, and foreign currency services; and asset based lending covering accounts receivable financing, factoring, and purchase order financing services. It serves individual and business customers, as well as nonprofit organizations in Morgan Hill, Gilroy, Salinas, and Campbell. Pinnacle Bank was founded in 2006 and is headquartered in Gilroy, California.