IBERIABANK (NASDAQ:IBKC) and First Citizens BancShares (NASDAQ:FCNCA) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.
Risk & Volatility
IBERIABANK has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, First Citizens BancShares has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.
87.3% of IBERIABANK shares are held by institutional investors. Comparatively, 46.7% of First Citizens BancShares shares are held by institutional investors. 2.7% of IBERIABANK shares are held by company insiders. Comparatively, 16.2% of First Citizens BancShares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a summary of current ratings and target prices for IBERIABANK and First Citizens BancShares, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Citizens BancShares||0||0||0||0||N/A|
IBERIABANK currently has a consensus target price of $88.50, suggesting a potential upside of 14.56%. Given IBERIABANK’s higher probable upside, research analysts plainly believe IBERIABANK is more favorable than First Citizens BancShares.
Valuation & Earnings
This table compares IBERIABANK and First Citizens BancShares’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|IBERIABANK||$1.37 billion||3.07||$370.25 million||$6.69||11.55|
|First Citizens BancShares||$1.65 billion||3.10||$400.31 million||N/A||N/A|
First Citizens BancShares has higher revenue and earnings than IBERIABANK.
IBERIABANK pays an annual dividend of $1.72 per share and has a dividend yield of 2.2%. First Citizens BancShares pays an annual dividend of $1.60 per share and has a dividend yield of 0.4%. IBERIABANK pays out 25.7% of its earnings in the form of a dividend. IBERIABANK has raised its dividend for 3 consecutive years. IBERIABANK is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares IBERIABANK and First Citizens BancShares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Citizens BancShares||23.88%||11.60%||1.14%|
IBERIABANK beats First Citizens BancShares on 8 of the 15 factors compared between the two stocks.
IBERIABANK Company Profile
IBERIABANK Corporation operates as the holding company for IBERIABANK that provides commercial and retail banking products and services in the United States. It offers various commercial, consumer, mortgage, and private banking products and services; cash management services; deposit and annuity products; and brokerage services, as well as sells variable annuities. The company also provides various title insurance and loan closing services; equity research, institutional sales and trading, and corporate finance services; and wealth management and trust advisory services to high net worth individuals, pension funds, corporations, and trusts, as well as invests in purchased tax credits. As of December 31, 2018, it operated 191 bank branch offices and 3 loan production offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, Georgia, South Carolina, North Carolina, Mississippi, Missouri, and New York; 29 title insurance offices in Arkansas, Tennessee, and Louisiana; mortgage representative offices in 87 locations in 12 states; and 18 wealth management locations in 5 states. IBERIABANK Corporation was founded in 1887 and is headquartered in Lafayette, Louisiana.
First Citizens BancShares Company Profile
First Citizens BancShares, Inc. operates as the holding company for First-Citizens Bank & Trust Company that provides banking services to retail and commercial customers. Its deposit products include checking, savings, money market and time deposit accounts. The company's loan products portfolio comprises commercial construction and land development, commercial mortgage, commercial and industrial, lease financing, and other commercial real estate loans; and noncommercial construction and land development, residential mortgage, revolving mortgage, consumer loans, and construction and land development loans. It also offers treasury services products, cardholder and merchant services, wealth management services, and various other products and services; investment services, including annuities, discount brokerage services, and third-party mutual funds, as well as investment advisory services; trust and asset management services; and title insurance products. The company offers its products and services through its branch network, as well as through digital banking, telephone banking, and various ATM networks. As of December 31, 2017, it operated 545 branches in Arizona, California, Colorado, Florida, Georgia, Illinois, Kansas, Maryland, Minnesota, Missouri, New Mexico, North Carolina, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, and Wisconsin. The company was founded in 1898 and is headquartered in Raleigh, North Carolina.
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