First Citizens BancShares (NASDAQ: FCNCA) and CoBiz Financial (NASDAQ:COBZ) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.
First Citizens BancShares pays an annual dividend of $1.40 per share and has a dividend yield of 0.3%. CoBiz Financial pays an annual dividend of $0.22 per share and has a dividend yield of 1.1%. First Citizens BancShares pays out 5.2% of its earnings in the form of a dividend. CoBiz Financial pays out 27.8% 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.
This table compares First Citizens BancShares and CoBiz Financial’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First Citizens BancShares||$1.61 billion||3.33||$323.75 million||$26.95||16.56|
|CoBiz Financial||$177.19 million||4.76||$32.91 million||$0.79||25.29|
First Citizens BancShares has higher revenue and earnings than CoBiz Financial. First Citizens BancShares is trading at a lower price-to-earnings ratio than CoBiz Financial, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for First Citizens BancShares and CoBiz Financial, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Citizens BancShares||0||0||0||0||N/A|
CoBiz Financial has a consensus price target of $22.17, suggesting a potential upside of 10.94%. Given CoBiz Financial’s higher possible upside, analysts clearly believe CoBiz Financial is more favorable than First Citizens BancShares.
Volatility & Risk
First Citizens BancShares has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, CoBiz Financial has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.
Institutional & Insider Ownership
45.7% of First Citizens BancShares shares are owned by institutional investors. Comparatively, 82.3% of CoBiz Financial shares are owned by institutional investors. 19.4% of First Citizens BancShares shares are owned by insiders. Comparatively, 9.9% of CoBiz Financial 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.
This table compares First Citizens BancShares and CoBiz Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Citizens BancShares||20.11%||10.77%||1.01%|
CoBiz Financial beats First Citizens BancShares on 9 of the 15 factors compared between the two stocks.
About First Citizens BancShares
First Citizens BancShares, Inc. (BancShares) is a holding company of First-Citizens Bank & Trust Company (FCB). As of December 31, 2016, BancShares operated in 21 states providing a range of financial services to individuals, businesses and professionals. FCB offers a range of retail and commercial banking services. Its loan services include various types of commercial, business and consumer lending. Its deposit services include checking, savings, money market and time deposit accounts. FCB also provides mortgage lending, a full-service trust department, wealth management services for businesses and individuals and other activities incidental to commercial banking. FCB’s subsidiaries, First Citizens Investor Services, Inc. and First Citizens Asset Management, Inc., provide various investment products, including annuities, discount brokerage services and third-party mutual funds to customers primarily through the bank’s branch network, as well as investment advisory services.
About CoBiz Financial
CoBiz Financial Inc. is a financial holding company. The Company provides a range of banking and related services through its subsidiaries, CoBiz Bank (Bank), CoBiz Insurance, Inc. and CoBiz IM, Inc. (CoBiz IM). The Company’s segments include Commercial Banking, Fee-Based Lines, and Corporate Support and Other. Its Commercial Banking segment consists of the operations of the Bank, a full-service business banking institution that offers commercial, real estate and private banking, as well as treasury management, interest-rate hedging and depository products. Its Fee-Based Lines segment consists of the operations of CoBiz Wealth, LLC and CoBiz Insurance, Inc. CoBiz Wealth, LLC provides investment management advisory services to individuals, families and businesses. CoBiz Insurance, Inc. offers property and casualty (P&C) and employee benefit group insurance (EB) broker agency to small to mid-sized employers, commercial enterprises and individual lines to their owners.
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