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

Profitability

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

Net Margins Return on Equity Return on Assets
First Citizens BancShares 25.38% 12.42% 1.22%
Bank Ozk 32.47% 10.72% 1.82%

Dividends

First Citizens BancShares pays an annual dividend of $1.60 per share and has a dividend yield of 0.3%. Bank Ozk pays an annual dividend of $0.96 per share and has a dividend yield of 3.5%. Bank Ozk pays out 29.6% of its earnings in the form of a dividend.

Risk & Volatility

First Citizens BancShares has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Bank Ozk has a beta of 1.89, suggesting that its stock price is 89% more volatile than the S&P 500.

Institutional & Insider Ownership

44.3% of First Citizens BancShares shares are owned by institutional investors. Comparatively, 83.4% of Bank Ozk shares are owned by institutional investors. 16.2% of First Citizens BancShares shares are owned by company insiders. Comparatively, 6.7% of Bank Ozk shares are owned 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.

Earnings & Valuation

This table compares First Citizens BancShares and Bank Ozk’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Citizens BancShares $1.65 billion 3.11 $400.31 million N/A N/A
Bank Ozk $1.21 billion 2.94 $417.11 million $3.24 8.51

Bank Ozk has lower revenue, but higher earnings than First Citizens BancShares.

Analyst Ratings

This is a breakdown of recent recommendations for First Citizens BancShares and Bank Ozk, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Citizens BancShares 0 0 0 0 N/A
Bank Ozk 0 8 3 0 2.27

Bank Ozk has a consensus target price of $32.30, indicating a potential upside of 17.16%. Given Bank Ozk’s higher probable upside, analysts clearly believe Bank Ozk is more favorable than First Citizens BancShares.

Summary

Bank Ozk beats First Citizens BancShares on 8 of the 14 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 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.

About Bank Ozk

Bank OZK provides retail and commercial banking services to businesses, individuals, and non-profit and governmental entities. The company accepts non-interest bearing checking, interest bearing transaction, business sweep, savings, money market, individual retirement, and other accounts, as well as time deposits. Its loan products include loans secured by residential 1-4 family, non-farm/non-residential, agricultural, construction/land development, multifamily residential properties, and other land loans; small business and consumer loans; indirect consumer marine and RV loans; small business administration, farm service agency, and USDA guaranteed loans; commercial and industrial loans; and loans to businesses or individuals engages in the production of timber, poultry, livestock, or crops. The company also ACH, wire transfer, zero balance accounts, transaction reporting, wholesale lockbox, remote deposit capture, automated credit line transfer, investment sweep accounts, reconciliation, positive pay, and merchant and commercial card services. In addition, it provides personal trusts, custodial accounts, investment management accounts, and retirement accounts; and trustee, paying agent and registered transfer agent services, and other incidental services. Further, the company is involved in the provision of real estate appraisals; ATMs; telephone banking; electronic bill pay and mobile deposits; debit cards; safe deposit boxes; investment securities services; and other products and services, as well as processes merchant debit and credit card transactions, as well as real estate development and corporate aircraft businesses. As of December 31, 2018, it operated 251 offices in Arkansas, Georgia, Florida, North Carolina, Texas, Alabama, South Carolina, California, New York, and Mississippi. The company was formerly known as Bank of the Ozarks and changed its name to Bank OZK in July 2018. Bank OZK was founded in 1903 and is headquartered in Little Rock, Arkansas.

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