ACNB (NASDAQ:ACNB) vs. Timberland Bancorp (NASDAQ:TSBK) Financial Analysis

ACNB (NASDAQ:ACNB) and Timberland Bancorp (NASDAQ:TSBK) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

This table compares ACNB and Timberland Bancorp’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%
Timberland Bancorp	26.46%	11.72%	1.55%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for ACNB and Timberland Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ACNB	0	2	2	0	2.50
Timberland Bancorp	0	0	0	1	4.00

ACNB currently has a consensus target price of $64.50, indicating a potential upside of 3.18%. Given ACNB’s higher probable upside, research analysts plainly believe ACNB is more favorable than Timberland Bancorp.

Dividends

ACNB pays an annual dividend of $1.68 per share and has a dividend yield of 2.7%. Timberland Bancorp pays an annual dividend of $1.20 per share and has a dividend yield of 2.7%. ACNB pays out 31.9% of its earnings in the form of a dividend. Timberland Bancorp pays out 30.1% 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 increased its dividend for 8 consecutive years and Timberland Bancorp has increased its dividend for 13 consecutive years.

Valuation and Earnings

This table compares ACNB and Timberland Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ACNB	$161.34 million	3.94	$37.05 million	$5.27	11.86
Timberland Bancorp	$114.63 million	3.05	$29.16 million	$3.99	11.28

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

Insider and Institutional Ownership

32.3% of ACNB shares are owned by institutional investors. Comparatively, 65.5% of Timberland Bancorp shares are owned by institutional investors. 3.7% of ACNB shares are owned by insiders. Comparatively, 3.6% of Timberland Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

ACNB has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Timberland Bancorp has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Summary

ACNB beats Timberland Bancorp on 13 of the 18 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 Timberland Bancorp

Timberland Bancorp, Inc. operates as the bank holding company for Timberland Bank that provides various community banking services in Washington. It offers various deposit products, including money market deposit, checking, and regular savings accounts, as well as certificates of deposit. The company also provides one-to four-family residential, multi-family, and commercial real estate loans; and construction lending products, such as custom and owner/builder, speculative one- to four-family, commercial, multi-family, land development, and land development. In addition, it offers consumer loans comprising home equity lines of credit and second mortgage loans, automobile loans, boat loans, motorcycle loans, recreational vehicle loans, savings account loans, and unsecured loans; and commercial business loans. Timberland Bancorp, Inc. was founded in 1915 and is headquartered in Hoquiam, Washington.