First Citizens BancShares (NASDAQ:FCNCA) & First Bank (NASDAQ:FRBA) Head to Head Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Bank	14.48%	12.38%	1.30%
First Citizens BancShares	18.19%	14.84%	1.41%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bank	$120.30 million	2.44	$20.90 million	$1.13	13.29
First Citizens BancShares	$9.77 billion	2.74	$11.47 billion	$180.13	10.25

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

Volatility & Risk

First Bank has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, First Citizens BancShares has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.

Dividends

First Bank pays an annual dividend of $0.24 per share and has a dividend yield of 1.6%. First Citizens BancShares pays an annual dividend of $6.56 per share and has a dividend yield of 0.4%. First Bank pays out 21.2% of its earnings in the form of a dividend. First Citizens BancShares pays out 3.6% 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 7 consecutive years.

Analyst Ratings

This is a breakdown of current ratings for First Bank and First Citizens BancShares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bank	0	0	1	0	3.00
First Citizens BancShares	0	4	5	0	2.56

First Bank currently has a consensus price target of $18.00, suggesting a potential upside of 19.84%. First Citizens BancShares has a consensus price target of $2,012.11, suggesting a potential upside of 9.03%. Given First Bank’s stronger consensus rating and higher probable upside, equities analysts plainly believe First Bank is more favorable than First Citizens BancShares.

Insider & Institutional Ownership

64.9% of First Bank shares are owned by institutional investors. Comparatively, 61.2% of First Citizens BancShares shares are owned by institutional investors. 13.1% of First Bank shares are owned by company insiders. Comparatively, 13.4% of First Citizens BancShares shares are owned by company 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.

Summary

First Citizens BancShares beats First Bank on 11 of the 17 factors compared between the two stocks.

About First Bank

First Bank provides various banking products and services to small to mid-sized businesses and individuals. The company accepts various deposits, including non-interest-bearing demand deposits, interest bearing demand accounts, money market accounts, savings accounts, and certificates of deposit, as well as commercial checking accounts. It also offers various loan products comprising commercial and industrial loans, which include line of credit, inventory, equipment, and short-term working capital financing; commercial real estate loans, such as owner-occupied, investor, construction and development, and multi-family loans; residential real estate loans comprising residential mortgages, first and second lien home equity loans, and revolving lines of credit; and consumer and other loans consists of auto, personal, traditional installment, and other loans. The company also provides electronic banking services, including Internet and mobile banking, electronic bill payment, and banking by phone; ATM and debit cards, and wire and ACH transfer services; remote deposit capture; and cash management services, as well as engages in the capital markets activities. It operates full-service branches in Cinnaminson, Delanco, Denville, Ewing, Fairfield, Flemington, Hamilton, Lawrence, Monroe, Pennington, Randolph, Somerset, and Williamstown, New Jersey; Doylestown, Trevose, Warminster, and West Chester, Paoli, Malvern, Coventry, Devon, Lionville, and Glen Mills Pennsylvania; and Palm Beach, Florida. First Bank was incorporated in 2007 and is headquartered in Hamilton, New Jersey.

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.