ACNB (NASDAQ:ACNB) vs. SR Bancorp (NASDAQ:SRBK) Financial Survey

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

Dividends

SR Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. ACNB pays an annual dividend of $1.68 per share and has a dividend yield of 2.6%. SR Bancorp pays out 53.3% 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. ACNB has increased its dividend for 8 consecutive years. ACNB is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current recommendations for SR Bancorp and ACNB, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SR Bancorp	0	1	1	0	2.50
ACNB	0	3	2	0	2.40

SR Bancorp presently has a consensus target price of $19.00, suggesting a potential downside of 2.51%. ACNB has a consensus target price of $64.50, suggesting a potential downside of 1.06%. Given ACNB’s higher possible upside, analysts clearly believe ACNB is more favorable than SR Bancorp.

Earnings and Valuation

This table compares SR Bancorp and ACNB”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SR Bancorp	$33.45 million	4.72	$3.35 million	$0.45	43.31
ACNB	$191.82 million	3.46	$37.05 million	$5.27	12.37

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

Profitability

This table compares SR Bancorp and ACNB’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SR Bancorp	6.47%	1.61%	0.27%
ACNB	27.15%	13.78%	1.77%

Volatility and Risk

SR Bancorp has a beta of 0.55, indicating that its share price is 45% less 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.

Institutional & Insider Ownership

24.7% of SR Bancorp shares are held by institutional investors. Comparatively, 32.4% of ACNB shares are held by institutional investors. 7.8% of SR Bancorp shares are held by company insiders. Comparatively, 3.7% of ACNB shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

ACNB beats SR Bancorp on 13 of the 17 factors compared between the two stocks.

About SR Bancorp

SR Bancorp, Inc. operates as the holding company for Somerset Regal Bank that provides customary retail and commercial banking services to individuals, businesses, and local municipalities in the communities of Somerset, Middlesex, Hunterdon, and Essex counties in New Jersey. It offers deposit instruments, including noninterest-bearing demand deposits, interest-bearing demand accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides loans comprising one- to four family-residential mortgage loans, home equity loans and lines of credit, unsecured personal loans, and rehabilitation loans; and bill payment services. In addition, it is involved in the investment activities. The company was founded in 1887 and is headquartered in Bound Brook, New Jersey.

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.