First Citizens BancShares (NASDAQ:FCNCA) versus F.N.B. (NYSE:FNB) Critical Survey

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

Valuation and Earnings

This table compares F.N.B. and First Citizens BancShares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
F.N.B.	$2.69 billion	2.33	$565.00 million	$1.62	10.89
First Citizens BancShares	$14.51 billion	1.69	$2.21 billion	$165.72	12.39

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

F.N.B. pays an annual dividend of $0.48 per share and has a dividend yield of 2.7%. First Citizens BancShares pays an annual dividend of $8.40 per share and has a dividend yield of 0.4%. F.N.B. pays out 29.6% of its earnings in the form of a dividend. First Citizens BancShares pays out 5.1% 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.

Profitability

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

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

Analyst Ratings

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

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

F.N.B. currently has a consensus price target of $20.20, suggesting a potential upside of 14.54%. First Citizens BancShares has a consensus price target of $2,227.08, suggesting a potential upside of 8.43%. Given F.N.B.’s stronger consensus rating and higher possible upside, equities research analysts plainly believe F.N.B. is more favorable than First Citizens BancShares.

Insider and Institutional Ownership

79.3% of F.N.B. shares are held by institutional investors. Comparatively, 78.0% of First Citizens BancShares shares are held by institutional investors. 1.5% of F.N.B. shares are held by insiders. Comparatively, 14.6% of First Citizens BancShares shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

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

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.

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.