Financial Contrast: First Citizens BancShares (NASDAQ:FCNCA) and ABN AMRO Bank (OTCMKTS:AAVMY)

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

Dividends

ABN AMRO Bank pays an annual dividend of $1.19 per share and has a dividend yield of 2.8%. First Citizens BancShares pays an annual dividend of $8.40 per share and has a dividend yield of 0.4%. ABN AMRO Bank pays out 36.7% 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. First Citizens BancShares has raised its dividend for 8 consecutive years.

Valuation and Earnings

This table compares ABN AMRO Bank and First Citizens BancShares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ABN AMRO Bank	$19.04 billion	1.86	$2.30 billion	$3.24	13.33
First Citizens BancShares	$9.33 billion	2.88	$2.21 billion	$187.04	12.70

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

Insider & Institutional Ownership

78.0% of First Citizens BancShares shares are owned by institutional investors. 14.6% of First Citizens BancShares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ABN AMRO Bank	14.22%	9.12%	0.56%
First Citizens BancShares	16.28%	12.07%	1.06%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for ABN AMRO Bank and First Citizens BancShares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ABN AMRO Bank	0	1	5	1	3.00
First Citizens BancShares	0	11	2	1	2.29

First Citizens BancShares has a consensus target price of $2,280.23, indicating a potential downside of 4.02%. Given First Citizens BancShares’ higher possible upside, analysts plainly believe First Citizens BancShares is more favorable than ABN AMRO Bank.

Summary

First Citizens BancShares beats ABN AMRO Bank on 10 of the 16 factors compared between the two stocks.

About ABN AMRO Bank

ABN AMRO Bank N.V. provides various banking products and financial services to retail, private, and business clients in the Netherlands and internationally. It operates through three segments: Personal & Business Banking, Wealth Management, and Corporate Banking. The company provides savings and deposits products; investment and insurance products; and consumer, personal, car, and home improvement loan. It also issues, promotes, manages, and processes credit cards; trade finance, international payments, and treasury management; corporate finance and equity capital market; and revolving credit card facilities and pension schemes, as well as consumer credit and mortgages; and life and non-life insurance products. In addition, it offers asset-based solutions, including working capital solutions, equipment leases and loans, and vendor lease services; private banking and wealth-management-related services; and derivatives and equity clearing services. The company was incorporated in 2009 and is headquartered in Amsterdam, the Netherlands. ABN AMRO Bank N.V. operates as a subsidiary of Stichting Administratiekantoor Continuïteit Abn Amro Bank.

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.