Contrasting Flagstar Bank, National Association (NYSE:FLG) and ACNB (NASDAQ:ACNB)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ACNB	27.16%	13.87%	1.79%
Flagstar Bank, National Association	2.22%	1.45%	0.12%

Analyst Ratings

This is a summary of recent ratings and recommmendations for ACNB and Flagstar Bank, National Association, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ACNB	0	2	2	0	2.50
Flagstar Bank, National Association	3	3	9	0	2.40

ACNB currently has a consensus price target of $64.50, indicating a potential downside of 2.52%. Flagstar Bank, National Association has a consensus price target of $14.12, indicating a potential upside of 33.86%. Given Flagstar Bank, National Association’s higher possible upside, analysts clearly believe Flagstar Bank, National Association is more favorable than ACNB.

Risk & Volatility

ACNB has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Flagstar Bank, National Association has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ACNB	$191.82 million	3.51	$37.05 million	$5.40	12.25
Flagstar Bank, National Association	$4.81 billion	0.91	-$177.00 million	$0.15	70.35

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

Institutional and Insider Ownership

32.4% of ACNB shares are held by institutional investors. Comparatively, 67.9% of Flagstar Bank, National Association shares are held by institutional investors. 3.7% of ACNB shares are held by company insiders. Comparatively, 21.4% of Flagstar Bank, National Association shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

ACNB pays an annual dividend of $1.68 per share and has a dividend yield of 2.5%. Flagstar Bank, National Association pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. ACNB pays out 31.1% of its earnings in the form of a dividend. Flagstar Bank, National Association pays out 26.7% 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. ACNB has raised its dividend for 8 consecutive years. ACNB is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

ACNB beats Flagstar Bank, National Association on 9 of the 17 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 Flagstar Bank, National Association

Flagstar Financial, Inc. operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company’s deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit. Its loan products comprise multi-family loans; commercial real estate loans; acquisition, development, and construction loans; commercial and industrial loans; one-to-four family loans; specialty finance loans and leases; warehouse loans; and other loans, such as home equity lines of credit, boat and recreational vehicle indirect lending, point of sale consumer loans, and other consumer loans, including overdraft loans. The company offers cash management products; non-deposit investment and insurance products; and online banking, mobile banking, and bank-by-phone services. It primarily serves individuals, small and mid-size businesses, and professional associations. The company was formerly known as New York Community Bancorp, Inc. and changed its name to Flagstar Financial, Inc. in October 2024. Flagstar Financial, Inc. was founded in 1859 and is headquartered in Hicksville, New York.