Financial Comparison: First Citizens BancShares (NASDAQ:FCNCA) vs. F.N.B. (NYSE:FNB)

First Citizens BancShares (NASDAQ:FCNCA) and F.N.B. (NYSE:FNB) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Valuation & Earnings

This table compares First Citizens BancShares and F.N.B.”s gross revenue, earnings per share (EPS) 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	$165.72	11.93
F.N.B.	$2.69 billion	2.35	$565.00 million	$1.62	11.01

First Citizens BancShares has higher revenue and earnings than F.N.B.. F.N.B. 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.

Dividends

First Citizens BancShares pays an annual dividend of $8.40 per share and has a dividend yield of 0.4%. F.N.B. pays an annual dividend of $0.48 per share and has a dividend yield of 2.7%. First Citizens BancShares pays out 5.1% of its earnings in the form of a dividend. F.N.B. 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 increased its dividend for 8 consecutive years.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Citizens BancShares	0	8	4	2	2.57
F.N.B.	0	0	6	0	3.00

First Citizens BancShares presently has a consensus price target of $2,227.08, indicating a potential upside of 12.69%. F.N.B. has a consensus price target of $20.20, indicating a potential upside of 13.28%. Given F.N.B.’s stronger consensus rating and higher possible upside, analysts plainly believe F.N.B. is more favorable than First Citizens BancShares.

Volatility and Risk

First Citizens BancShares has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, F.N.B. has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Institutional and Insider Ownership

78.0% of First Citizens BancShares shares are owned by institutional investors. Comparatively, 79.3% of F.N.B. shares are owned by institutional investors. 14.6% of First Citizens BancShares shares are owned by company insiders. Comparatively, 1.5% of F.N.B. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares First Citizens BancShares and F.N.B.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Citizens BancShares	15.21%	11.18%	1.03%
F.N.B.	21.64%	8.94%	1.19%

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 F.N.B.

F.N.B. Corporation, a bank and financial holding company, provides a range of financial products and services primarily to consumers, corporations, governments, and small- to medium-sized businesses in the United States. The company operates through three segments: Community Banking, Wealth Management, and Insurance. The Community Banking segment offers commercial and consumer banking services, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. It also provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services. The Wealth Management segment provides personal and corporate fiduciary services comprising administration of decedent and trust estates; and securities brokerage and investment advisory services, mutual funds, and annuities. The Insurance segment comprises commercial and personal insurance, and reinsurance products, as well as mezzanine financing options for small- to medium-sized businesses. The company operates community banking branches in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C., and Virginia. F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.