Hancock Whitney (NASDAQ:HWC) versus First Citizens BancShares (NASDAQ:FCNCA) Critical Analysis

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

Dividends

Hancock Whitney pays an annual dividend of $1.60 per share and has a dividend yield of 3.1%. First Citizens BancShares pays an annual dividend of $7.80 per share and has a dividend yield of 0.4%. Hancock Whitney pays out 35.9% of its earnings in the form of a dividend. First Citizens BancShares pays out 4.3% 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.

Institutional and Insider Ownership

81.2% of Hancock Whitney shares are owned by institutional investors. Comparatively, 61.2% of First Citizens BancShares shares are owned by institutional investors. 1.1% of Hancock Whitney shares are owned by insiders. Comparatively, 13.4% of First Citizens BancShares shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Hancock Whitney and First Citizens BancShares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hancock Whitney	$1.37 billion	3.28	$392.60 million	$4.46	11.68
First Citizens BancShares	$9.80 billion	2.87	$11.47 billion	$180.13	10.76

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

Risk and Volatility

Hancock Whitney has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, First Citizens BancShares has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hancock Whitney	19.30%	11.47%	1.28%
First Citizens BancShares	18.19%	14.84%	1.41%

Analyst Ratings

This is a summary of current ratings for Hancock Whitney and First Citizens BancShares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hancock Whitney	0	3	6	0	2.67
First Citizens BancShares	0	4	6	0	2.60

Hancock Whitney currently has a consensus price target of $56.89, indicating a potential upside of 9.23%. First Citizens BancShares has a consensus price target of $2,025.90, indicating a potential upside of 4.57%. Given Hancock Whitney’s stronger consensus rating and higher probable upside, research analysts plainly believe Hancock Whitney is more favorable than First Citizens BancShares.

Summary

Hancock Whitney beats First Citizens BancShares on 8 of the 15 factors compared between the two stocks.

About Hancock Whitney

Hancock Whitney Corporation operates as the financial holding company for Hancock Whitney Bank that provides traditional and online banking services to commercial, small business, and retail customers. It offers various transaction and savings deposit products consisting of brokered deposits, time deposits, and money market accounts; treasury management services, secured and unsecured loan products including revolving credit facilities, and letters of credit and similar financial guarantees; and trust and investment management services to retirement plans, corporations, and individuals, and investment advisory and brokerage products. The company also provides commercial and industrial loans including real and non-real estate loans; construction and land development loans; and residential mortgages, as well as consumer loans. In addition, it offers commercial finance products to middle market and corporate clients, including leases and related structures; facilitates investments in new market tax credit activities and holding certain foreclosed assets; provides customers access to fixed annuity and life insurance products; and underwriting transactions products, as well as debt and mortgage-related securities. The company was founded in 1899 and is headquartered in Gulfport, Mississippi.

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.