Financial Analysis: First Citizens BancShares (NASDAQ:FCNCA) and Republic Bancorp (NASDAQ:RBCAA)

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

Insider and Institutional Ownership

61.2% of First Citizens BancShares shares are held by institutional investors. Comparatively, 24.4% of Republic Bancorp shares are held by institutional investors. 13.4% of First Citizens BancShares shares are held by insiders. Comparatively, 55.5% of Republic Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares First Citizens BancShares and Republic Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Citizens BancShares	51.04%	13.52%	1.22%
Republic Bancorp	21.16%	10.39%	1.46%

Volatility and Risk

First Citizens BancShares has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Republic Bancorp has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for First Citizens BancShares and Republic Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Citizens BancShares	0	3	5	0	2.63
Republic Bancorp	0	0	1	0	3.00

First Citizens BancShares currently has a consensus price target of $1,667.71, indicating a potential upside of 3.14%. Given First Citizens BancShares’ higher probable upside, research analysts plainly believe First Citizens BancShares is more favorable than Republic Bancorp.

Dividends

First Citizens BancShares pays an annual dividend of $6.56 per share and has a dividend yield of 0.4%. Republic Bancorp pays an annual dividend of $1.63 per share and has a dividend yield of 3.2%. First Citizens BancShares pays out 0.8% of its earnings in the form of a dividend. Republic Bancorp pays out 35.4% 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 and Republic Bancorp has increased its dividend for 23 consecutive years. Republic Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares First Citizens BancShares and Republic Bancorp’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	$12.09 billion	1.94	$11.47 billion	$784.51	2.06
Republic Bancorp	$427.52 million	2.29	$90.37 million	$4.60	10.99

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

Summary

First Citizens BancShares beats Republic Bancorp on 10 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 Republic Bancorp

Republic Bancorp, Inc., a financial holding company, provides various banking products and services in the United States. It operates in five segments: Traditional Banking, Warehouse, Mortgage Banking, Tax Refund Solutions, and Republic Credit Solutions. The company accepts demand, money market accounts, savings, individual retirement accounts, time, brokered, and other certificates of deposit. Its loan products include residential real estate, commercial real estate, construction and land development, home equity, secured and unsecured personal, and aircraft loans. The company also offers credit cards; title insurance and other financial products and services; and private banking, lockbox processing, remote deposit capture, business online banking, account reconciliation, automated clearing house processing, and internet and mobile banking services. In addition, it provides short-term and revolving credit facilities to mortgage bankers; warehouse lending; tax refund solutions, which facilitate the receipt and payment of federal and state tax refund products through third-party tax preparers and tax-preparation software providers; and general purpose reloadable prepaid cards, payroll debit cards, and limited-purpose demand deposit accounts through third party service providers. Further, the company offers consumer credit products; and property and casualty insurance products, as well as checking and saving accounts, commercial accounts, marine lending, equipment leasing, employee services, and merchant solutions. Republic Bancorp, Inc. was incorporated in 1974 and is headquartered in Louisville, Kentucky.