ACNB (NASDAQ:ACNB – Get Free Report) and Bank of America (NYSE:BAC – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.
Analyst Ratings
This is a summary of recent recommendations for ACNB and Bank of America, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ACNB | 0 | 3 | 2 | 0 | 2.40 |
| Bank of America | 0 | 6 | 21 | 0 | 2.78 |
ACNB presently has a consensus price target of $64.50, indicating a potential upside of 1.67%. Bank of America has a consensus price target of $63.88, indicating a potential upside of 13.93%. Given Bank of America’s stronger consensus rating and higher probable upside, analysts clearly believe Bank of America is more favorable than ACNB.
Dividends
Risk and Volatility
ACNB has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Bank of America has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.
Valuation & Earnings
This table compares ACNB and Bank of America”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ACNB | $191.82 million | 3.36 | $37.05 million | $5.27 | 12.04 |
| Bank of America | $191.57 billion | 2.05 | $30.51 billion | $4.36 | 12.86 |
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 ACNB and Bank of America’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ACNB | 27.15% | 13.78% | 1.77% |
| Bank of America | 17.56% | 12.20% | 0.98% |
Institutional and Insider Ownership
32.4% of ACNB shares are owned by institutional investors. Comparatively, 70.7% of Bank of America shares are owned by institutional investors. 3.7% of ACNB shares are owned by insiders. Comparatively, 0.3% of Bank of America shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Bank of America beats ACNB on 10 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 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.
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