Analyzing First Citizens BancShares (NASDAQ:FCNCA) and Southern First Bancshares (NASDAQ:SFST)

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

Insider and Institutional Ownership

78.0% of First Citizens BancShares shares are held by institutional investors. Comparatively, 75.0% of Southern First Bancshares shares are held by institutional investors. 14.6% of First Citizens BancShares shares are held by insiders. Comparatively, 6.9% of Southern First Bancshares shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares First Citizens BancShares and Southern First Bancshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Citizens BancShares	$14.51 billion	1.61	$2.21 billion	$173.88	11.23
Southern First Bancshares	$224.62 million	2.37	$30.37 million	$4.28	13.15

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Citizens BancShares	15.62%	11.37%	1.04%
Southern First Bancshares	15.21%	9.65%	0.79%

Analyst Ratings

This is a summary of recent ratings for First Citizens BancShares and Southern First Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Citizens BancShares	0	9	4	1	2.43
Southern First Bancshares	0	1	2	0	2.67

First Citizens BancShares currently has a consensus price target of $2,202.08, indicating a potential upside of 12.82%. Southern First Bancshares has a consensus price target of $64.00, indicating a potential upside of 13.68%. Given Southern First Bancshares’ stronger consensus rating and higher possible upside, analysts clearly believe Southern First Bancshares is more favorable than First Citizens BancShares.

Risk & Volatility

First Citizens BancShares has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Southern First Bancshares has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Summary

First Citizens BancShares beats Southern First Bancshares on 10 of the 15 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 Southern First Bancshares

Southern First Bancshares, Inc. operates as the bank holding company for Southern First Bank that provides commercial, consumer, and mortgage loans to the general public in South Carolina, North Carolina, and Georgia. The company accepts various deposit products that include checking accounts, commercial checking accounts, and savings accounts, as well as other time deposits, including daily money market accounts and long-term certificates of deposit. Its loan portfolio comprises commercial real estate loans; construction real estate loans; commercial business loans for various lines of businesses, such as the manufacturing, service industry, and professional service areas; consumer real estate and home equity loans; and other consumer loans, including secured and unsecured installment loans and revolving lines of credit. In addition, the company provides other bank services, such as internet banking, cash management, safe deposit boxes, direct deposit, automatic drafts, bill payment, and mobile banking services. Southern First Bancshares, Inc. was incorporated in 1999 and is headquartered in Greenville, South Carolina.