Head-To-Head Survey: Banc of California (NYSE:BANC) & ACNB (NASDAQ:ACNB)

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

Volatility & Risk

Banc of California has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, ACNB has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Profitability

This table compares Banc of California and ACNB’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banc of California	8.30%	7.37%	0.65%
ACNB	15.64%	10.22%	1.25%

Dividends

Banc of California pays an annual dividend of $0.40 per share and has a dividend yield of 2.8%. ACNB pays an annual dividend of $1.36 per share and has a dividend yield of 3.1%. Banc of California pays out 61.5% 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. ACNB has raised its dividend for 8 consecutive years. ACNB is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

86.9% of Banc of California shares are held by institutional investors. Comparatively, 32.4% of ACNB shares are held by institutional investors. 2.7% of Banc of California shares are held by company insiders. Comparatively, 3.5% of ACNB shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Banc of California and ACNB”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banc of California	$1.89 billion	1.13	$126.89 million	$0.65	22.32
ACNB	$132.20 million	3.42	$31.85 million	$2.69	16.05

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Banc of California and ACNB, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banc of California	0	4	8	0	2.67
ACNB	0	0	3	0	3.00

Banc of California presently has a consensus price target of $17.3333, suggesting a potential upside of 19.47%. ACNB has a consensus price target of $49.25, suggesting a potential upside of 14.06%. Given Banc of California’s higher possible upside, analysts plainly believe Banc of California is more favorable than ACNB.

Summary

ACNB beats Banc of California on 11 of the 17 factors compared between the two stocks.

About Banc of California

Banc of California, Inc. operates as the bank holding company for Banc of California that provides various banking products and services in California. The company offers deposit products, such as checking, savings, money market, demand, and time deposits; certificates of deposit; retirement accounts; and safe deposit boxes. It also provides real estate loans to professional developers and real estate investors for the acquisition, construction, refinancing, renovation, and on-going operation of commercial real estate properties; commercial real estate mortgage, residential real estate mortgage, and real estate construction and land loans; commercial loans and leases, such as equipment finance, other asset-based, venture capital, secured business, warehouse, and other lending services; small business administration loans; and consumer loans comprising personal, auto, and other loans, as well as home equity and revolving lines of credit. In addition, the company offers international banking, multi-state deposit, and asset and investment management services, as well as cash and treasury management services; and online, mobile, remote deposit, and telephone banking services. It serves small and middle-market businesses, venture capital firms, non-profit organizations, business owners, entrepreneurs, professionals, and high-net worth individuals. Banc of California, Inc. was founded in 1941 and is headquartered in Los Angeles, California.

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.