ACNB (NASDAQ:ACNB) vs. Bank of America (NYSE:BAC) Financial Comparison

Bank of America (NYSE:BAC) and ACNB (NASDAQ:ACNB) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.

Risk & Volatility

Bank of America has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, ACNB has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Valuation & Earnings

This table compares Bank of America and ACNB”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of America	$191.57 billion	2.05	$30.51 billion	$4.36	12.86
ACNB	$191.82 million	3.36	$37.05 million	$5.27	12.04

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bank of America	17.56%	12.20%	0.98%
ACNB	27.15%	13.78%	1.77%

Analyst Ratings

This is a summary of current ratings and price targets for Bank of America and ACNB, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of America	0	6	21	0	2.78
ACNB	0	3	2	0	2.40

Bank of America presently has a consensus target price of $63.88, suggesting a potential upside of 13.93%. ACNB has a consensus target price of $64.50, suggesting a potential upside of 1.67%. Given Bank of America’s stronger consensus rating and higher possible upside, analysts plainly believe Bank of America is more favorable than ACNB.

Dividends

Bank of America pays an annual dividend of $1.28 per share and has a dividend yield of 2.3%. ACNB pays an annual dividend of $1.68 per share and has a dividend yield of 2.6%. Bank of America pays out 29.4% of its earnings in the form of a dividend. ACNB pays out 31.9% 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. Bank of America has raised its dividend for 11 consecutive years and ACNB has raised its dividend for 8 consecutive years.

Insider and Institutional Ownership

70.7% of Bank of America shares are owned by institutional investors. Comparatively, 32.4% of ACNB shares are owned by institutional investors. 0.3% of Bank of America shares are owned by company insiders. Comparatively, 3.7% of ACNB shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Bank of America beats ACNB on 10 of the 17 factors compared between the two stocks.

About Bank of America

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates in four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, non-interest and interest-bearing checking accounts, and investment accounts and products; credit and debit cards; residential mortgages, and home equity loans; and direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans. The GWIM segment provides investment management, brokerage, banking, and trust and retirement products and services; wealth management solutions; and customized solutions, including specialty asset management services. The Global Banking segment offers lending products and services, including commercial loans, leases, commitment facilities, trade finance, and commercial real estate and asset-based lending; treasury solutions, such as treasury management, foreign exchange, short-term investing options, and merchant services; working capital management solutions; debt and equity underwriting and distribution, and merger-related and other advisory services; and fixed-income and equity research, and certain market-based services. The Global Markets segment provides market-making, financing, securities clearing, settlement, and custody services; securities and derivative products; and risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1784 and is based in Charlotte, North Carolina.

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.