Five Star Bancorp (NASDAQ:FSBC) versus First Citizens BancShares (NASDAQ:FCNCA) Financial Survey

First Citizens BancShares (NASDAQ:FCNCA) and Five Star Bancorp (NASDAQ:FSBC) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Risk and Volatility

First Citizens BancShares has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Five Star Bancorp has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.

Dividends

First Citizens BancShares pays an annual dividend of $8.40 per share and has a dividend yield of 0.4%. Five Star Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.3%. First Citizens BancShares pays out 4.5% of its earnings in the form of a dividend. Five Star Bancorp pays out 29.6% 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 raised its dividend for 8 consecutive years.

Analyst Ratings

This is a summary of current recommendations and price targets for First Citizens BancShares and Five Star 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
Five Star Bancorp	0	3	4	0	2.57

First Citizens BancShares presently has a consensus price target of $2,272.54, indicating a potential upside of 8.72%. Five Star Bancorp has a consensus price target of $45.20, indicating a potential upside of 3.13%. Given First Citizens BancShares’ higher possible upside, analysts plainly believe First Citizens BancShares is more favorable than Five Star Bancorp.

Earnings & Valuation

This table compares First Citizens BancShares and Five Star Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Citizens BancShares	$14.51 billion	1.63	$2.21 billion	$187.04	11.18
Five Star Bancorp	$255.47 million	4.21	$61.61 million	$3.38	12.97

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

Profitability

This table compares First Citizens BancShares and Five Star 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%
Five Star Bancorp	25.92%	15.92%	1.45%

Insider and Institutional Ownership

78.0% of First Citizens BancShares shares are held by institutional investors. Comparatively, 46.9% of Five Star Bancorp shares are held by institutional investors. 14.6% of First Citizens BancShares shares are held by insiders. Comparatively, 21.8% of Five Star Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

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 Five Star Bancorp

Five Star Bancorp operates as the bank holding company for Five Star Bank that provides a range of banking products and services to small and medium-sized businesses, professionals, and individuals in Northern California. It accepts various deposits, such as money market accounts, noninterest-bearing and interest checking accounts, savings accounts, term certificate accounts, and time deposits. The company also offers loan products, including commercial and residential real estate loans; commercial loans; commercial land loans; farmland loans; commercial and residential construction loans; and consumer and other loans, as well as operating lines of credit. In addition, it provides debit cards; and remote deposit capture, online and mobile banking, and direct deposit services. Five Star Bancorp was founded in 1999 and is headquartered in Rancho Cordova, California.