Analyzing ACNB (ACNB) and Berkshire Bancorp (BERK)

ACNB (NASDAQ:ACNB) and Berkshire Bancorp (OTCMKTS:BERK) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
ACNB 24.22% 13.04% 1.28%
Berkshire Bancorp N/A N/A N/A

Analyst Recommendations

This is a breakdown of current ratings and price targets for ACNB and Berkshire Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ACNB 0 0 0 0 N/A
Berkshire Bancorp 0 0 0 0 N/A

Earnings & Valuation

This table compares ACNB and Berkshire Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ACNB $65.93 million 3.92 $9.78 million N/A N/A
Berkshire Bancorp $32.99 million 5.73 $4.93 million N/A N/A

ACNB has higher revenue and earnings than Berkshire Bancorp.

Dividends

ACNB pays an annual dividend of $0.92 per share and has a dividend yield of 2.5%. Berkshire Bancorp does not pay a dividend.

Institutional and Insider Ownership

21.2% of ACNB shares are held by institutional investors. Comparatively, 0.8% of Berkshire Bancorp shares are held by institutional investors. 3.8% of ACNB shares are held by insiders. Comparatively, 70.4% of Berkshire Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

ACNB has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500. Comparatively, Berkshire Bancorp has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.

Summary

ACNB beats Berkshire Bancorp on 7 of the 10 factors compared between the two stocks.

About ACNB

ACNB Corporation operates as the financial holding company for ACNB Bank that provides various banking and financial services to individual, business, and government customers primarily in Pennsylvania. The company accepts deposit products, including interest and non-interest checking, savings, and money market accounts, as well as time deposits. 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 comprising home equity loans and lines of credit, automobile and recreational vehicle loans, manufactured housing loans, and personal lines of credit; and mortgage lending programs consisting of personal residential mortgages, and residential construction and investment mortgage loans. In addition, the company provides estate settlement services; 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 through a third-party provider. Further, it acts as a trustee to invest in, protect, manage, and distribute financial assets. The company operates through a network of 22 community banking offices located in Adams, Cumberland, Franklin, and York counties, Pennsylvania, as well as 1 loan production office in York County, Pennsylvania. Additionally, it operates Russell Insurance Group, Inc. that provides insurance agency services. It offers property and casualty, life, and health insurance products to commercial and individual clients. ACNB Corporation was founded in 1857 and is headquartered in Gettysburg, Pennsylvania.

About Berkshire Bancorp

Berkshire Bancorp Inc. operates as the bank holding company for The Berkshire Bank that provides community banking services primarily to businesses, professionals, and retail customers. The company offers various deposit products, including statement savings accounts, NOW accounts, money market deposits accounts, checking accounts, and certificates of deposit. Its loan portfolio comprises commercial mortgage loans secured by office buildings, retail establishments, multi-family residential real estate, and other types of commercial property; commercial loans offered to businesses for inventory financing, working capital, machinery and equipment purchases, expansion, and other business purposes; and residential mortgage loans secured by first liens on one-to-four family owner-occupied or rental residential real estate, as well as residential single family construction loans, home equity loans and lines of credit, and short-term fixed-rate consumer loans. The company also offers title insurance agency services; and acts as a qualified intermediary in connection with tax free exchanges under Section 1031 of the Internal Revenue Code of 1986. It operates through seven deposit-taking offices in New York City; four deposit-taking offices in Orange and Sullivan counties, New York; and one deposit taking office in Teaneck, New Jersey. The company was founded in 1979 and is based in New York, New York.

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