First Citizens BancShares (FCNCA) & Its Rivals Critical Comparison

First Citizens BancShares (NASDAQ: FCNCA) is one of 308 publicly-traded companies in the “Banks” industry, but how does it contrast to its rivals? We will compare First Citizens BancShares to similar businesses based on the strength of its profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Profitability

This table compares First Citizens BancShares and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Citizens BancShares 20.60% 10.17% 0.94%
First Citizens BancShares Competitors 18.67% 8.73% 0.94%

Dividends

First Citizens BancShares pays an annual dividend of $1.20 per share and has a dividend yield of 0.3%. First Citizens BancShares pays out 4.5% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 35.1% of their earnings in the form of a dividend.

Insider & Institutional Ownership

45.2% of First Citizens BancShares shares are held by institutional investors. Comparatively, 51.7% of shares of all “Banks” companies are held by institutional investors. 19.4% of First Citizens BancShares shares are held by company insiders. Comparatively, 10.4% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares First Citizens BancShares and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
First Citizens BancShares $1.47 billion $225.48 million 14.90
First Citizens BancShares Competitors $5.56 billion $817.91 million 366.20

First Citizens BancShares’ rivals have higher revenue and earnings than First Citizens BancShares. First Citizens BancShares is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

First Citizens BancShares has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, First Citizens BancShares’ rivals have a beta of 0.80, suggesting that their average share price is 20% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for First Citizens BancShares and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Citizens BancShares 0 0 0 0 N/A
First Citizens BancShares Competitors 2063 8048 8277 327 2.37

As a group, “Banks” companies have a potential downside of 1.40%. Given First Citizens BancShares’ rivals higher possible upside, analysts clearly believe First Citizens BancShares has less favorable growth aspects than its rivals.

Summary

First Citizens BancShares rivals beat First Citizens BancShares on 7 of the 12 factors compared.

First Citizens BancShares Company Profile

First Citizens BancShares, Inc. (BancShares) is a holding company of First-Citizens Bank & Trust Company (FCB). As of December 31, 2016, BancShares operated in 21 states providing a range of financial services to individuals, businesses and professionals. FCB offers a range of retail and commercial banking services. Its loan services include various types of commercial, business and consumer lending. Its deposit services include checking, savings, money market and time deposit accounts. FCB also provides mortgage lending, a full-service trust department, wealth management services for businesses and individuals and other activities incidental to commercial banking. FCB’s subsidiaries, First Citizens Investor Services, Inc. and First Citizens Asset Management, Inc., provide various investment products, including annuities, discount brokerage services and third-party mutual funds to customers primarily through the bank’s branch network, as well as investment advisory services.

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