ACNB (NASDAQ:ACNB) vs. Malaga Financial (OTCMKTS:MLGF) Head to Head Analysis

ACNB (NASDAQ:ACNB) and Malaga Financial (OTCMKTS:MLGF) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for ACNB and Malaga Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ACNB	0	1	2	0	2.67
Malaga Financial	0	0	0	0	0.00

ACNB currently has a consensus target price of $45.00, suggesting a potential downside of 1.32%. Given ACNB’s stronger consensus rating and higher probable upside, equities research analysts plainly believe ACNB is more favorable than Malaga Financial.

Institutional & Insider Ownership

32.4% of ACNB shares are held by institutional investors. Comparatively, 1.2% of Malaga Financial shares are held by institutional investors. 3.6% of ACNB shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares ACNB and Malaga Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ACNB	23.43%	10.18%	1.21%
Malaga Financial	N/A	N/A	N/A

Volatility & Risk

ACNB has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Malaga Financial has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.

Dividends

ACNB pays an annual dividend of $1.28 per share and has a dividend yield of 2.8%. Malaga Financial pays an annual dividend of $1.00 per share and has a dividend yield of 4.3%. ACNB pays out 37.2% of its earnings in the form of a dividend. Malaga Financial pays out 38.9% 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ACNB	$115.08 million	3.39	$31.69 million	$3.44	13.26
Malaga Financial	N/A	N/A	$22.98 million	$2.57	9.05

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

Summary

ACNB beats Malaga Financial on 14 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 Malaga Financial

Malaga Financial Corporation operates as the holding company for Malaga Bank that provides various community banking products and services to personal and business customers. It offers checking, savings, NOW, and money market accounts, certificates of deposits, business banking, consumer, and demand deposits. The company also provides commercial real estate, single and multi-family residential mortgage, consumer, 14-unit investment property, construction, personal, and business loans; home equity lines of credit; and certificates of deposit. In addition, it offers coupon redemption, direct deposit, overdraft lines of credit, telephone transfers, U.S. savings bond redemption, and wire transfer services; and ATM and VISA debit cards, bank by mail, medallion signature guarantee, night depository, notary, safe deposit boxes, and trust deed note collection services. Further, the company provides online banking services, including bill payer, e-statements, and mobile banking services. The company was incorporated in 2002 and is headquartered in Palos Verdes Estates, California.