Reviewing Bank7 (NASDAQ:BSVN) & First Citizens BancShares (NASDAQ:FCNCA)

Bank7 (NASDAQ:BSVN) and First Citizens BancShares (NASDAQ:FCNCA) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Institutional and Insider Ownership

23.5% of Bank7 shares are owned by institutional investors. Comparatively, 78.0% of First Citizens BancShares shares are owned by institutional investors. 25.8% of Bank7 shares are owned by company insiders. Comparatively, 13.4% of First Citizens BancShares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Bank7 and First Citizens BancShares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank7	31.38%	18.58%	2.34%
First Citizens BancShares	15.21%	11.18%	1.03%

Analyst Ratings

This is a summary of current recommendations and price targets for Bank7 and First Citizens BancShares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank7	0	1	3	0	2.75
First Citizens BancShares	1	5	6	1	2.54

Bank7 presently has a consensus target price of $54.00, suggesting a potential upside of 39.14%. First Citizens BancShares has a consensus target price of $2,238.27, suggesting a potential upside of 25.37%. Given Bank7’s stronger consensus rating and higher probable upside, analysts plainly believe Bank7 is more favorable than First Citizens BancShares.

Volatility and Risk

Bank7 has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, First Citizens BancShares has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.

Dividends

Bank7 pays an annual dividend of $1.08 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 0.5%. Bank7 pays out 24.1% of its earnings in the form of a dividend. First Citizens BancShares pays out 5.1% 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. Bank7 has increased its dividend for 5 consecutive years and First Citizens BancShares has increased its dividend for 8 consecutive years.

Earnings and Valuation

This table compares Bank7 and First Citizens BancShares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank7	$137.26 million	2.67	$43.07 million	$4.49	8.64
First Citizens BancShares	$14.51 billion	1.47	$2.21 billion	$165.72	10.77

First Citizens BancShares has higher revenue and earnings than Bank7. Bank7 is trading at a lower price-to-earnings ratio than First Citizens BancShares, indicating that it is currently the more affordable of the two stocks.

About Bank7

Bank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers. It offers commercial deposit, commercial checking, money market, and other deposit accounts; and retail deposit services, such as certificates of deposit, money market accounts, checking accounts, negotiable order of withdrawal accounts, savings accounts, and automated teller machine access. The company also provides commercial real estate, hospitality, energy, and commercial and industrial lending services; consumer lending services to individuals for personal and household purposes comprising residential real estate loans and mortgage banking services, personal lines of credit, loans for the purchase of automobiles, and other installment loans, as well as secured and unsecured term loans and home improvement loans. It operates through a network of full-service branches in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area, and Kansas. The company was formerly known as Haines Financial Corp. Bank7 Corp. was founded in 1901 and is headquartered in Oklahoma City, Oklahoma.

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.