First Citizens BancShares (NASDAQ:FCNCA) versus Summit State Bank (NASDAQ:SSBI) Critical Analysis

Summit State Bank (NASDAQ:SSBI) and First Citizens BancShares (NASDAQ:FCNCA) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Summit State Bank and First Citizens BancShares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summit State Bank	$58.82 million	1.42	$6.80 million	$0.34	36.31
First Citizens BancShares	$14.51 billion	1.65	$2.21 billion	$187.04	11.35

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Summit State Bank and First Citizens BancShares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit State Bank	0	1	0	0	2.00
First Citizens BancShares	0	11	2	1	2.29

First Citizens BancShares has a consensus price target of $2,261.00, suggesting a potential upside of 6.46%. Given First Citizens BancShares’ stronger consensus rating and higher probable upside, analysts clearly believe First Citizens BancShares is more favorable than Summit State Bank.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Summit State Bank	3.87%	N/A	N/A
First Citizens BancShares	16.28%	12.07%	1.06%

Institutional and Insider Ownership

78.0% of First Citizens BancShares shares are held by institutional investors. 14.6% of First Citizens BancShares shares are held by 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.

Volatility & Risk

Summit State Bank has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, First Citizens BancShares has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.

Summary

First Citizens BancShares beats Summit State Bank on 14 of the 15 factors compared between the two stocks.

About Summit State Bank

Summit State Bank engages in providing an array of financial services to small and medium-sized businesses, their owners and employees, entrepreneurs, high net worth families, foundations, estates, and individual consumers. It specializes in business services, personal accounts, nonprofit programs, and mobile banking ranging from lending, checking, merchant, eBanking, automated teller machines, equity loans, and others. The company was founded on December 20, 1982 and is headquartered in Santa Rosa, CA.

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.