Analyzing First Citizens BancShares (NASDAQ:FCNCA) & Third Coast Bancshares (NASDAQ:TCBX)

First Citizens BancShares (NASDAQ:FCNCA) and Third Coast Bancshares (NASDAQ:TCBX) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Valuation & Earnings

This table compares First Citizens BancShares and Third Coast Bancshares”s 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	1.66	$2.21 billion	$173.88	11.93
Third Coast Bancshares	$219.24 million	3.00	$47.67 million	$3.89	10.21

First Citizens BancShares has higher revenue and earnings than Third Coast Bancshares. Third Coast Bancshares 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.

Analyst Recommendations

This is a summary of recent ratings and target prices for First Citizens BancShares and Third Coast Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Citizens BancShares	0	9	3	1	2.38
Third Coast Bancshares	0	2	3	0	2.60

First Citizens BancShares presently has a consensus price target of $2,215.91, indicating a potential upside of 6.83%. Third Coast Bancshares has a consensus price target of $45.00, indicating a potential upside of 13.34%. Given Third Coast Bancshares’ stronger consensus rating and higher probable upside, analysts plainly believe Third Coast Bancshares is more favorable than First Citizens BancShares.

Institutional and Insider Ownership

78.0% of First Citizens BancShares shares are owned by institutional investors. Comparatively, 36.9% of Third Coast Bancshares shares are owned by institutional investors. 14.6% of First Citizens BancShares shares are owned by company insiders. Comparatively, 10.5% of Third Coast Bancshares 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 Third Coast Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Citizens BancShares	15.62%	11.48%	1.03%
Third Coast Bancshares	16.30%	12.05%	1.17%

Volatility and Risk

First Citizens BancShares has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Third Coast Bancshares has a beta of 0.33, indicating that its share price is 67% 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%. Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 42.5%. First Citizens BancShares pays out 4.8% of its earnings in the form of a dividend. Third Coast Bancshares pays out 433.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Citizens BancShares has increased its dividend for 8 consecutive years.

Summary

First Citizens BancShares beats Third Coast Bancshares on 9 of the 17 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 Third Coast Bancshares

Third Coast Bancshares, Inc. operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit. It also offers commercial and industrial loans, equipment loans, working capital lines of credit, guaranteed loans, auto finance, letters of credit, commercial and residential real estate, and construction, development, and other loans. In addition, the company provides retail and commercial online banking platforms, mobile banking apps, mortgage, treasury management solutions, merchant card services, and customer digital solutions, as well as debit and credit cards. Third Coast Bancshares, Inc. was founded in 2008 and is headquartered in Humble, Texas.