First Guaranty Bancshares (NASDAQ:FGBI) versus First Citizens BancShares (NASDAQ:FCNCA) Financial Analysis

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

Risk & Volatility

First Citizens BancShares has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, First Guaranty Bancshares has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.

Earnings & Valuation

This table compares First Citizens BancShares and First Guaranty Bancshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Citizens BancShares	$9.33 billion	2.59	$2.21 billion	$187.04	11.45
First Guaranty Bancshares	$92.00 million	1.48	-$56.02 million	($2.42)	-3.41

First Citizens BancShares has higher revenue and earnings than First Guaranty Bancshares. First Guaranty 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.

Dividends

First Citizens BancShares pays an annual dividend of $8.40 per share and has a dividend yield of 0.4%. First Guaranty Bancshares pays an annual dividend of $0.04 per share and has a dividend yield of 0.5%. First Citizens BancShares pays out 4.5% of its earnings in the form of a dividend. First Guaranty Bancshares pays out -1.7% 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. First Guaranty Bancshares is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

78.0% of First Citizens BancShares shares are held by institutional investors. Comparatively, 39.5% of First Guaranty Bancshares shares are held by institutional investors. 14.6% of First Citizens BancShares shares are held by insiders. Comparatively, 49.4% of First Guaranty Bancshares shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Citizens BancShares	16.28%	12.07%	1.06%
First Guaranty Bancshares	-16.83%	-12.25%	-0.60%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for First Citizens BancShares and First Guaranty Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Citizens BancShares	0	11	2	1	2.29
First Guaranty Bancshares	1	1	0	0	1.50

First Citizens BancShares currently has a consensus price target of $2,261.00, indicating a potential upside of 5.54%. Given First Citizens BancShares’ stronger consensus rating and higher probable upside, research analysts clearly believe First Citizens BancShares is more favorable than First Guaranty Bancshares.

Summary

First Citizens BancShares beats First Guaranty Bancshares on 15 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 First Guaranty Bancshares

First Guaranty Bancshares, Inc. operates as the holding company for First Guaranty Bank that provides commercial banking services in Louisiana and Texas. It offers various deposit products, including personal and business checking, savings, money market, and demand accounts, as well as time deposits to consumers, small businesses, and municipalities. The company provides loans, such as non-farm, non-residential loans secured by real estate, commercial and industrial loans, one- to four-family residential loans, multifamily loans, construction and land development loans, agricultural loans, farmland loans, and consumer and other loans to small to medium-sized businesses and professionals, and individuals. In addition, it offers a range of consumer services, including credit cards, mobile deposit capture, safe deposit boxes, official checks, online and mobile banking, automated teller machines, and online bill pay; provides additional solutions, such as merchant services, remote deposit capture, and lockbox services to business customers; and invests a portion of its assets in securities issued by the United States Government and its agencies, state and municipal obligations, corporate debt securities, mutual funds, and equity securities, as well as invests in mortgage-backed securities primarily issued or guaranteed by United States Government agencies or enterprises. First Guaranty Bancshares, Inc. was founded in 1934 and is headquartered in Hammond, Louisiana.