Head-To-Head Survey: First Citizens BancShares (NASDAQ:FCNCA) & Citigroup (NYSE:C)

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

Insider & Institutional Ownership

71.7% of Citigroup shares are held by institutional investors. Comparatively, 78.0% of First Citizens BancShares shares are held by institutional investors. 0.1% of Citigroup 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, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Citigroup	10.23%	10.15%	0.72%
First Citizens BancShares	16.28%	12.07%	1.06%

Dividends

Citigroup pays an annual dividend of $2.68 per share and has a dividend yield of 2.0%. First Citizens BancShares pays an annual dividend of $8.40 per share and has a dividend yield of 0.4%. Citigroup pays out 28.9% of its earnings in the form of a dividend. First Citizens BancShares pays out 4.5% 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. Citigroup has increased its dividend for 2 consecutive years and First Citizens BancShares has increased its dividend for 8 consecutive years.

Analyst Ratings

This is a summary of recent ratings for Citigroup and First Citizens BancShares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Citigroup	0	5	13	1	2.79
First Citizens BancShares	0	11	2	1	2.29

Citigroup presently has a consensus price target of $145.22, suggesting a potential upside of 10.19%. First Citizens BancShares has a consensus price target of $2,272.54, suggesting a potential upside of 7.61%. Given Citigroup’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Citigroup is more favorable than First Citizens BancShares.

Risk and Volatility

Citigroup has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, First Citizens BancShares has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Valuation & Earnings

This table compares Citigroup 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
Citigroup	$168.30 billion	1.34	$14.31 billion	$9.26	14.23
First Citizens BancShares	$14.51 billion	1.64	$2.21 billion	$187.04	11.29

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

Summary

First Citizens BancShares beats Citigroup on 9 of the 17 factors compared between the two stocks.

About Citigroup

Citigroup Inc., a diversified financial service holding company, provides various financial product and services to consumers, corporations, governments, and institutions worldwide. It operates through five segments: Services, Markets, Banking, U.S. Personal Banking, and Wealth. The Services segment includes Treasury and Trade Solutions, which provides cash management, trade, and working capital solutions to multinational corporations, financial institutions, and public sector organizations; and Securities Services, such as cross-border support for clients, local market expertise, post-trade technologies, data solutions, and various securities services solutions. The Markets segment offers sales and trading services for equities, foreign exchange, rates, spread products, and commodities to corporate, institutional, and public sector clients; and market-making services, including asset classes, risk management solutions, financing, prime brokerage, research, securities clearing, and settlement. The banking segment includes investment banking; advisory services related to mergers and acquisitions, divestitures, restructurings, and corporate defense activities; and corporate lending, which includes corporate and commercial banking. The U.S. Personal Banking segment provides co-branded cards and retail banking services. The Wealth segment provides financial services to high-net-worth clients through banking, lending, mortgages, investment, custody, and trust product offerings; and to professional industries, including law firms, consulting groups, accounting, and asset management. The company was founded in 1812 and is headquartered in New York, New York.

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.