Critical Comparison: First Citizens BancShares (NASDAQ:FCNCA) & Orange County Bancorp (NASDAQ:OBT)

First Citizens BancShares (NASDAQ:FCNCA) and Orange County Bancorp (NASDAQ:OBT) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Dividends

First Citizens BancShares pays an annual dividend of $8.40 per share and has a dividend yield of 0.4%. Orange County Bancorp pays an annual dividend of $0.72 per share and has a dividend yield of 1.9%. First Citizens BancShares pays out 4.5% of its earnings in the form of a dividend. Orange County Bancorp pays out 20.3% 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. First Citizens BancShares has increased its dividend for 8 consecutive years.

Earnings & Valuation

This table compares First Citizens BancShares and Orange County Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Citizens BancShares	$9.33 billion	2.57	$2.21 billion	$187.04	11.34
Orange County Bancorp	$158.13 million	3.19	$41.61 million	$3.55	10.58

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

Institutional and Insider Ownership

78.0% of First Citizens BancShares shares are held by institutional investors. Comparatively, 42.5% of Orange County Bancorp shares are held by institutional investors. 14.6% of First Citizens BancShares shares are held by insiders. Comparatively, 8.2% of Orange County Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for First Citizens BancShares and Orange County Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Citizens BancShares	0	11	2	1	2.29
Orange County Bancorp	0	0	2	2	3.50

First Citizens BancShares currently has a consensus target price of $2,261.00, indicating a potential upside of 6.63%. Orange County Bancorp has a consensus target price of $43.25, indicating a potential upside of 15.15%. Given Orange County Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Orange County Bancorp is more favorable than First Citizens BancShares.

Profitability

This table compares First Citizens BancShares and Orange County Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Citizens BancShares	16.28%	12.07%	1.06%
Orange County Bancorp	30.80%	16.44%	1.75%

Volatility and Risk

First Citizens BancShares has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Orange County Bancorp has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Summary

First Citizens BancShares beats Orange County Bancorp on 9 of the 17 factors compared between the two stocks.

About First Citizens BancShares

First Citizens BancShares, Inc. operates as the holding company for First-Citizens Bank & Trust Company that provides retail and commercial banking services to individuals, businesses, and professionals. The company's deposit products include checking, savings, money market, and time deposit accounts. Its loan product portfolio comprises commercial construction and mortgage; and commercial and industrial leases, as well as small business administration loans. In addition, the company offers consumer loans, such as residential and revolving mortgage, consumer auto, and other consumer loans. Further, it provides wealth management services, including annuities, brokerage services, and third-party mutual funds, as well as investment management and advisory services. The company provides its products and services through its branch network. First Citizens BancShares, Inc. was founded in 1898 and is headquartered in Raleigh, North Carolina.

About Orange County Bancorp

Orange County Bancorp, Inc., through its subsidiaries, provides commercial and consumer banking products and services, and trust and wealth management services to small businesses, middle-market enterprises, local municipal governments, and individuals. It accepts various deposits, including interest-bearing and noninterest-bearing demand accounts, money market deposit accounts, savings accounts, and certificates of deposit. The company also offers commercial real estate loans, commercial and industrial loans, commercial real estate construction loans, residential real estate loans, home equity loans, and consumer loans. In addition, it provides traditional trust and administration, asset management, financial planning, and wealth management services. The company operates full-service branches and loan production office in Orange, Westchester, Rockland, and Bronx counties in New York. Orange County Bancorp, Inc. was founded in 1892 and is headquartered in Middletown, New York.