First Citizens BancShares (NASDAQ:FCNCA) and Bank of Hawaii (NYSE:BOH) Head-To-Head Contrast

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

Risk & Volatility

First Citizens BancShares has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Bank of Hawaii has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Institutional & Insider Ownership

78.0% of First Citizens BancShares shares are owned by institutional investors. Comparatively, 82.2% of Bank of Hawaii shares are owned by institutional investors. 12.9% of First Citizens BancShares shares are owned by insiders. Comparatively, 2.5% of Bank of Hawaii shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

First Citizens BancShares pays an annual dividend of $7.80 per share and has a dividend yield of 0.3%. Bank of Hawaii pays an annual dividend of $2.80 per share and has a dividend yield of 3.9%. First Citizens BancShares pays out 4.5% of its earnings in the form of a dividend. Bank of Hawaii pays out 84.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares First Citizens BancShares and Bank of Hawaii’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Citizens BancShares	17.36%	13.63%	1.33%
Bank of Hawaii	13.76%	11.33%	0.61%

Valuation and Earnings

This table compares First Citizens BancShares and Bank of Hawaii”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Citizens BancShares	$12.09 billion	2.59	$11.47 billion	$174.55	12.84
Bank of Hawaii	$986.98 million	2.89	$171.20 million	$3.33	21.52

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Citizens BancShares	0	6	7	0	2.54
Bank of Hawaii	2	3	1	0	1.83

First Citizens BancShares presently has a consensus target price of $2,290.75, indicating a potential upside of 2.24%. Bank of Hawaii has a consensus target price of $71.83, indicating a potential upside of 0.23%. Given First Citizens BancShares’ stronger consensus rating and higher possible upside, equities analysts plainly believe First Citizens BancShares is more favorable than Bank of Hawaii.

Summary

First Citizens BancShares beats Bank of Hawaii on 11 of the 16 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 Bank of Hawaii

Bank of Hawaii Corporation operates as the bank holding company for Bank of Hawaii that provides various financial products and services in Hawaii, Guam, and other Pacific Islands. It operates in three segments: Consumer Banking, Commercial Banking, and Treasury and Other. The Consumer Banking segment offers checking, savings, and time deposit accounts; residential mortgage loans, home equity lines of credit, automobile loans and leases, overdraft lines of credit, installment loans, small business loans and leases, and credit cards; private and international client banking, investment, credit, and trust services to individuals and families, as well as high-net-worth individuals; investment management; institutional investment advisory services to corporations, government entities, and foundations; and brokerage offerings, including equities, mutual funds, life insurance, and annuity products. The Commercial Banking segment provides corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit products. This segment also offers commercial lending and deposit products to middle-market and large companies, and government entities; commercial real estate mortgages to investors, developers, and builders; and international banking and merchant services. The Treasury and Other segment provides corporate asset and liability management services, including interest rate risk management and foreign exchange services. Bank of Hawaii Corporation was founded in 1897 and is headquartered in Honolulu, Hawaii.