Head-To-Head Review: Red River Bancshares (NASDAQ:RRBI) versus ACNB (NASDAQ:ACNB)

Red River Bancshares (NASDAQ:RRBI) and ACNB (NASDAQ:ACNB) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.

Dividends

Red River Bancshares pays an annual dividend of $0.60 per share and has a dividend yield of 0.9%. ACNB pays an annual dividend of $1.36 per share and has a dividend yield of 3.0%. Red River Bancshares pays out 10.6% 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. Red River Bancshares has raised its dividend for 3 consecutive years and 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.

Volatility and Risk

Red River Bancshares has a beta of 0.53, meaning that its share price is 47% 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.

Insider & Institutional Ownership

27.6% of Red River Bancshares shares are held by institutional investors. Comparatively, 32.4% of ACNB shares are held by institutional investors. 15.9% of Red River Bancshares shares are held by insiders. Comparatively, 3.5% of ACNB shares are held 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.

Profitability

This table compares Red River Bancshares and ACNB’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red River Bancshares	23.62%	11.76%	1.23%
ACNB	15.64%	10.22%	1.25%

Earnings & Valuation

This table compares Red River Bancshares and ACNB”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red River Bancshares	$157.67 million	2.74	$34.24 million	$5.67	11.42
ACNB	$132.20 million	3.56	$31.85 million	$2.69	16.71

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red River Bancshares	0	0	1	0	3.00
ACNB	0	0	3	0	3.00

Red River Bancshares currently has a consensus price target of $67.00, indicating a potential upside of 3.46%. ACNB has a consensus price target of $49.25, indicating a potential upside of 9.57%. Given ACNB’s higher possible upside, analysts plainly believe ACNB is more favorable than Red River Bancshares.

Summary

ACNB beats Red River Bancshares on 9 of the 16 factors compared between the two stocks.

About Red River Bancshares

Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit. In addition, the company provides treasury management, private banking, and brokerage; investment advisory, financial planning, and a suite of retirement plans; debit and credit cards, direct deposits, cashier's checks, and wire transfer services; online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and banking services in person, through ATMs, drive-through facilities, night deposits, telephone, mail, mobile banking, and remote deposits. Red River Bancshares, Inc. was incorporated in 1998 and is headquartered in Alexandria, Louisiana.

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.