Comparing BancFirst (NASDAQ:BANF) & ACNB (NASDAQ:ACNB)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BancFirst	24.94%	14.16%	1.70%
ACNB	15.64%	10.22%	1.25%

Institutional and Insider Ownership

51.7% of BancFirst shares are owned by institutional investors. Comparatively, 32.4% of ACNB shares are owned by institutional investors. 32.4% of BancFirst shares are owned by company insiders. Comparatively, 3.5% of ACNB shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BancFirst	$908.71 million	4.59	$216.35 million	$6.95	18.00
ACNB	$132.20 million	3.47	$31.85 million	$2.69	16.28

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

Dividends

BancFirst pays an annual dividend of $1.96 per share and has a dividend yield of 1.6%. ACNB pays an annual dividend of $1.36 per share and has a dividend yield of 3.1%. BancFirst pays out 28.2% of its earnings in the form of a dividend. ACNB pays out 50.6% 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. BancFirst has increased its dividend for 31 consecutive years and ACNB has increased its dividend for 8 consecutive years.

Analyst Ratings

This is a summary of current ratings for BancFirst and ACNB, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BancFirst	0	3	1	0	2.25
ACNB	0	2	2	0	2.50

BancFirst presently has a consensus target price of $134.00, suggesting a potential upside of 7.11%. ACNB has a consensus target price of $49.25, suggesting a potential upside of 12.44%. Given ACNB’s stronger consensus rating and higher possible upside, analysts plainly believe ACNB is more favorable than BancFirst.

Risk and Volatility

BancFirst has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, ACNB has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Summary

BancFirst beats ACNB on 12 of the 17 factors compared between the two stocks.

About BancFirst

BancFirst Corporation operates as the bank holding company for BancFirst that provides a range of commercial banking services to retail customers, and small to medium-sized businesses. The company operates through BancFirst Metropolitan Banks, BancFirst Community Banks, Pegasus, Worthington, and Other Financial Services segments. It offers checking accounts, negotiable order of withdrawal accounts, savings accounts, money market accounts, sweep accounts, club accounts, individual retirement accounts, and certificates of deposit, as well as overdraft protection and auto draft services. The company also provides commercial and agricultural non-real estate loans for working capital, facilities acquisition or expansion, purchase of equipment, and other needs; lending services that include private banking, energy, commercial and residential real estate, and commercial and industrial loans; and loans to finance purchases of consumer goods, such as automobiles, boats, household goods, vacations, and education. In addition, it engages in the investment management and administration of trusts for individuals, corporations, and employee benefit plans, as well as bond trustee and paying agent business for various Oklahoma municipalities and governmental entities; and provision of item processing, research, and other correspondent banking services to financial institutions and governmental units. Further, the company provides insurance agency services; depository and funds transfer, collection, safe deposit box, cash management, and other services. It serves customers in non-metropolitan trade centers and cities in the metropolitan statistical areas of Oklahoma. The company was formerly known as United Community Corporation and changed its name to BancFirst Corporation in November 1988. BancFirst Corporation was incorporated in 1984 and is headquartered in Oklahoma City, Oklahoma.

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.