Head-To-Head Comparison: S&T Bancorp (NASDAQ:STBA) & ACNB (NASDAQ:ACNB)

S&T Bancorp (NASDAQ:STBAGet Rating) and ACNB (NASDAQ:ACNBGet Rating) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.

Earnings & Valuation

This table compares S&T Bancorp and ACNB’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
S&T Bancorp $353.87 million 3.26 $110.34 million $2.74 10.70
ACNB $100.85 million 2.87 $27.83 million $3.10 10.72

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

Institutional and Insider Ownership

61.1% of S&T Bancorp shares are held by institutional investors. Comparatively, 23.4% of ACNB shares are held by institutional investors. 1.5% of S&T Bancorp shares are held by company insiders. Comparatively, 3.8% of ACNB shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

S&T Bancorp pays an annual dividend of $1.20 per share and has a dividend yield of 4.1%. ACNB pays an annual dividend of $1.04 per share and has a dividend yield of 3.1%. S&T Bancorp pays out 43.8% of its earnings in the form of a dividend. ACNB pays out 33.5% 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. S&T Bancorp has increased its dividend for 2 consecutive years and ACNB has increased its dividend for 1 consecutive years. S&T Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current recommendations for S&T Bancorp and ACNB, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
S&T Bancorp 0 3 1 0 2.25
ACNB 0 0 0 0 N/A

S&T Bancorp presently has a consensus target price of $30.23, suggesting a potential upside of 3.12%. Given S&T Bancorp’s higher possible upside, research analysts plainly believe S&T Bancorp is more favorable than ACNB.

Profitability

This table compares S&T Bancorp and ACNB’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
S&T Bancorp 30.99% 9.00% 1.14%
ACNB 27.49% 10.13% 0.98%

Volatility and Risk

S&T Bancorp has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, ACNB has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500.

Summary

S&T Bancorp beats ACNB on 11 of the 16 factors compared between the two stocks.

About S&T Bancorp (Get Rating)

S&T Bancorp, Inc. operates as the bank holding company for S&T Bank that provides retail and commercial banking products and services. The company operates through six segments: Commercial Real Estate, Commercial and Industrial, Business Banking, Commercial Construction, Consumer Real Estate, and Other Consumer. The company accepts time and demand deposits; and offers commercial and consumer loans, cash management services, and brokerage and trust services, as well as acts as guardian and custodian of employee benefits. It also manages private investment accounts for individuals and institutions. In addition, the company distributes life insurance and long-term disability income insurance products, as well as offers title insurance agency services to commercial customers; and acts as a reinsurer of credit life, accident, and health insurance policies. As of December 31, 2021, it operated 73 banking branches and 5 loan production offices located in Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York. S&T Bancorp, Inc. was founded in 1902 and is headquartered in Indiana, Pennsylvania.

About ACNB (Get Rating)

ACNB Corporation, a financial holding company, provides banking, insurance, and financial services to individual, business, and government customers in the United States. The company offers checking, savings, and money market deposit accounts, as well as time deposits and debit cards. It also provides 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 individual clients; and online, telephone, and mobile banking, as well as automated teller machine services. As of December 31, 2021, it operated through a network of 19 community banking offices located in Pennsylvania, including 12 offices in Adams county, five offices in York county, one office in Cumberland County, and one office in Franklin County; five community banking offices located in Frederick County; six community banking offices located in Carroll county, Maryland; and loan offices located in Lancaster and York, Pennsylvania, and Hunt Valley, Maryland. The company was founded in 1857 and is headquartered in Gettysburg, Pennsylvania.

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