First Citizens BancShares (NASDAQ:FCNCA) and First Community Bankshares (NASDAQ:FCBC) Head-To-Head Analysis

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

Dividends

First Citizens BancShares pays an annual dividend of $6.56 per share and has a dividend yield of 0.4%. First Community Bankshares pays an annual dividend of $1.16 per share and has a dividend yield of 3.3%. First Citizens BancShares pays out 3.6% of its earnings in the form of a dividend. First Community Bankshares pays out 42.8% 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 2 consecutive years.

Earnings and Valuation

This table compares First Citizens BancShares and First Community Bankshares’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Citizens BancShares	$12.09 billion	2.07	$11.47 billion	$180.13	9.58
First Community Bankshares	$174.62 million	3.70	$48.02 million	$2.71	12.92

First Citizens BancShares has higher revenue and earnings than First Community Bankshares. First Citizens BancShares is trading at a lower price-to-earnings ratio than First Community Bankshares, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

61.2% of First Citizens BancShares shares are owned by institutional investors. Comparatively, 35.0% of First Community Bankshares shares are owned by institutional investors. 12.9% of First Citizens BancShares shares are owned by company insiders. Comparatively, 3.7% of First Community Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for First Citizens BancShares and First Community Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Citizens BancShares	0	5	6	0	2.55
First Community Bankshares	1	0	0	0	1.00

First Citizens BancShares presently has a consensus price target of $1,829.90, suggesting a potential upside of 6.87%. First Community Bankshares has a consensus price target of $33.00, suggesting a potential downside of 6.83%. Given First Citizens BancShares’ stronger consensus rating and higher probable upside, equities analysts plainly believe First Citizens BancShares is more favorable than First Community Bankshares.

Risk & Volatility

First Citizens BancShares has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, First Community Bankshares has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Citizens BancShares	18.22%	15.75%	1.45%
First Community Bankshares	27.10%	11.09%	1.67%

Summary

First Citizens BancShares beats First Community Bankshares on 12 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 First Community Bankshares

First Community Bankshares, Inc. operates as the financial holding company for First Community Bank that provides various banking products and services. It offers demand deposit accounts, savings and money market accounts, certificates of deposit, and individual retirement plans; and commercial, consumer real estate, and consumer and other loans. The company also provides trust management, estate administration, and investment advisory services; and investment management services. It serves individuals and businesses across various industries, such as education, government, and health services; coal mining and gas extraction; retail trade; construction; manufacturing; tourism; and transportation. The company operates through branches in West Virginia, Virginia, North Carolina, and Tennessee. Community Bankshares, Inc. was founded in 1874 and is headquartered in Bluefield, Virginia.