Head to Head Review: First Citizens BancShares (NASDAQ:FCNCA) and Community Trust Bancorp (NASDAQ:CTBI)

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

Volatility and Risk

First Citizens BancShares has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Community Trust Bancorp has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Insider & Institutional Ownership

78.0% of First Citizens BancShares shares are owned by institutional investors. Comparatively, 60.2% of Community Trust Bancorp shares are owned by institutional investors. 14.6% of First Citizens BancShares shares are owned by company insiders. Comparatively, 2.6% of Community Trust Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for First Citizens BancShares and Community Trust Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Citizens BancShares	0	8	4	2	2.57
Community Trust Bancorp	0	0	3	0	3.00

First Citizens BancShares presently has a consensus target price of $2,227.08, indicating a potential upside of 12.69%. Community Trust Bancorp has a consensus target price of $63.50, indicating a potential downside of 3.13%. Given First Citizens BancShares’ higher possible upside, analysts plainly believe First Citizens BancShares is more favorable than Community Trust Bancorp.

Valuation & Earnings

This table compares First Citizens BancShares and Community Trust Bancorp”s top-line 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
Community Trust Bancorp	$409.34 million	2.91	$98.06 million	$5.71	11.48

First Citizens BancShares has higher revenue and earnings than Community Trust Bancorp. Community Trust 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.

Dividends

First Citizens BancShares pays an annual dividend of $8.40 per share and has a dividend yield of 0.4%. Community Trust Bancorp pays an annual dividend of $2.12 per share and has a dividend yield of 3.2%. First Citizens BancShares pays out 5.1% of its earnings in the form of a dividend. Community Trust Bancorp pays out 37.1% 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 and Community Trust Bancorp has increased its dividend for 44 consecutive years. Community Trust Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares First Citizens BancShares and Community Trust Bancorp’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%
Community Trust Bancorp	24.85%	12.42%	1.57%

Summary

First Citizens BancShares beats Community Trust Bancorp on 11 of the 18 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 Community Trust Bancorp

Community Trust Bancorp, Inc. operates as the bank holding company for Community Trust Bank, Inc. that engages in the provision of commercial and personal banking, and trust and wealth management services to small and mid-sized communities in eastern, northeastern, central, and south-central Kentucky, as well as southern West Virginia, and northeastern Tennessee. The company accepts time and demand deposits, checking accounts, savings accounts and savings certificates, individual retirement accounts and Keogh plans, and money market accounts. Its loan portfolio includes commercial, construction, mortgage, and personal loans; lease-financing, lines of credit, revolving lines of credit, and term loans, as well as other specialized loans, including asset-based financing; residential and commercial real estate loans; and consumer loans. The company also provides cash management, renting safe deposit boxes, and funds transfer services; issues letters of credit; and acts as a trustee of personal trusts, executor of estates, trustee for employee benefit trusts, and paying agent for bond and stock issues, as well as an investment agent and depositor for securities. In addition, it offers securities brokerage services; debit cards; annuity and life insurance products; and repurchase agreements, as well as mobile, internet banking, and e-statement services. The company was founded in 1903 and is headquartered in Pikeville, Kentucky.