Financial Review: ACNB (NASDAQ:ACNB) & Bancorpsouth Bank (NASDAQ:BXS)

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

Profitability

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

Net Margins Return on Equity Return on Assets
ACNB 28.03% 13.77% 1.42%
Bancorpsouth Bank 21.23% 10.51% 1.29%

Risk and Volatility

ACNB has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500. Comparatively, Bancorpsouth Bank has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for ACNB and Bancorpsouth Bank, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ACNB 0 0 0 0 N/A
Bancorpsouth Bank 0 5 1 0 2.17

Bancorpsouth Bank has a consensus price target of $32.00, suggesting a potential upside of 3.69%. Given Bancorpsouth Bank’s higher probable upside, analysts clearly believe Bancorpsouth Bank is more favorable than ACNB.

Insider & Institutional Ownership

24.7% of ACNB shares are owned by institutional investors. Comparatively, 63.3% of Bancorpsouth Bank shares are owned by institutional investors. 3.8% of ACNB shares are owned by insiders. Comparatively, 2.6% of Bancorpsouth Bank shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

ACNB pays an annual dividend of $1.00 per share and has a dividend yield of 2.9%. Bancorpsouth Bank pays an annual dividend of $0.74 per share and has a dividend yield of 2.4%. Bancorpsouth Bank pays out 33.2% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares ACNB and Bancorpsouth Bank’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ACNB $80.44 million 3.05 $21.75 million N/A N/A
Bancorpsouth Bank $935.53 million 3.32 $221.32 million $2.23 13.84

Bancorpsouth Bank has higher revenue and earnings than ACNB.

Summary

Bancorpsouth Bank beats ACNB on 8 of the 14 factors compared between the two stocks.

ACNB Company Profile

ACNB Corporation, a financial holding company, provides banking, insurance, and financial services to individual, business, and government customers in the United States. The company offers checking, savings, and money market deposit accounts, as well as time deposits and debit cards. It also provides 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 comprising home equity loans and lines of credit, automobile and recreational vehicle loans, manufactured housing loans, and personal lines of credit; and mortgage lending programs consisting of personal residential mortgages, and residential construction and investment mortgage loans. In addition, the company provides estate settlement services; 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, life, and health insurance products to commercial and individual clients; and online, telephone, and mobile banking, as well as automated teller machine services. ACNB Corporation operates through a network of 22 community banking offices located in Adams, Cumberland, Franklin, and York counties, southcentral Pennsylvania; 7 community banking offices located in Carroll county, Maryland; and loan production offices located in York, York County, Pennsylvania, as well as in Hunt Valley, Baltimore County, Maryland. The company was founded in 1857 and is headquartered in Gettysburg, Pennsylvania.

Bancorpsouth Bank Company Profile

BancorpSouth Bank provides commercial banking and financial services to individuals and small-to-medium size businesses. It offers various deposit products, including interest and noninterest bearing demand deposits, and saving and other time deposits. The company also provides commercial loans, including term loans, lines of credit, equipment and receivable financing, and agricultural loans; a range of short-to-medium term secured and unsecured commercial loans to businesses for working capital, business expansion, and the purchase of equipment and machinery; and construction loans to real estate developers for the acquisition, development, and construction of residential subdivisions. In addition, it offers fixed and adjustable rate residential mortgage loans secured by owner-occupied property; residential construction loans; second mortgage loans; and home equity lines of credit, as well as non-residential consumer loans that consist of automobile, recreation vehicle, boat, personal, and deposit account secured loans, as well as issues credit cards. Further, the company operates as an agent for the sale of commercial lines of insurance; and a line of property and casualty, life, health, and employee benefits products and services. Additionally, it provides investment brokerage, and personal trust and estate services. As of April 25, 2018, the company operated through 279 full service branch locations, as well mortgage, insurance, and loan production offices in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee, Texas, and Illinois. The company was formerly known as BancorpSouth, Inc. and changed its name to BancorpSouth Bank in October 2017. BancorpSouth Bank was founded in 1876 and is headquartered in Tupelo, Mississippi.

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