Analyzing ACNB (NASDAQ:ACNB) & FinWise Bancorp (NASDAQ:FINW)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ACNB	$132.20 million	3.91	$31.85 million	$3.27	15.20
FinWise Bancorp	$96.84 million	2.54	$12.74 million	$1.06	17.05

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

Insider and Institutional Ownership

32.4% of ACNB shares are held by institutional investors. Comparatively, 35.4% of FinWise Bancorp shares are held by institutional investors. 3.5% of ACNB shares are held by company insiders. Comparatively, 21.3% of FinWise Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ACNB and FinWise Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ACNB	0	1	2	1	3.00
FinWise Bancorp	0	1	3	0	2.75

ACNB currently has a consensus price target of $48.67, suggesting a potential downside of 2.10%. FinWise Bancorp has a consensus price target of $22.00, suggesting a potential upside of 21.72%. Given FinWise Bancorp’s higher possible upside, analysts clearly believe FinWise Bancorp is more favorable than ACNB.

Volatility & Risk

ACNB has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, FinWise Bancorp has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ACNB	18.47%	11.58%	1.42%
FinWise Bancorp	12.13%	8.31%	1.82%

Summary

ACNB beats FinWise Bancorp on 9 of the 15 factors compared between the two stocks.

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.

About FinWise Bancorp

FinWise Bancorp operates as the bank holding company for FinWise Bank that provides various banking products and services to individual and corporate customers in Utah. The company offers various deposit products, including interest and noninterest bearing demand accounts, health savings account demand deposits, NOW and money market accounts, and checking and savings accounts, as well as time deposits and certificates of deposits. It also provides loans, including consumer, small business administration, commercial, commercial real estate, and residential real estate loans. In addition, the company offers debit cards, remote deposit capture, online banking, mobile banking, and direct deposit services; and business accounts and cash management services, such as business checking and savings accounts, and treasury services. FinWise Bancorp was founded in 1999 and is headquartered in Murray, Utah.