Analyzing First Citizens BancShares (NASDAQ:FCNCA) & TrustCo Bank Corp NY (TRST)

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

Volatility & Risk

First Citizens BancShares has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, TrustCo Bank Corp NY has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Dividends

First Citizens BancShares pays an annual dividend of $1.40 per share and has a dividend yield of 0.3%. TrustCo Bank Corp NY pays an annual dividend of $0.26 per share and has a dividend yield of 2.8%. First Citizens BancShares pays out 5.2% of its earnings in the form of a dividend. TrustCo Bank Corp NY pays out 54.2% 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.

Analyst Ratings

This is a summary of current recommendations for First Citizens BancShares and TrustCo Bank Corp NY, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Citizens BancShares 0 0 0 0 N/A
TrustCo Bank Corp NY 0 2 0 0 2.00

TrustCo Bank Corp NY has a consensus target price of $9.75, indicating a potential upside of 6.56%. Given TrustCo Bank Corp NY’s higher possible upside, analysts clearly believe TrustCo Bank Corp NY is more favorable than First Citizens BancShares.

Profitability

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

Net Margins Return on Equity Return on Assets
First Citizens BancShares 20.60% 10.17% 0.94%
TrustCo Bank Corp NY 25.16% 10.51% 0.95%

Insider and Institutional Ownership

44.8% of First Citizens BancShares shares are owned by institutional investors. Comparatively, 58.7% of TrustCo Bank Corp NY shares are owned by institutional investors. 19.4% of First Citizens BancShares shares are owned by company insiders. Comparatively, 0.2% of TrustCo Bank Corp NY shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares First Citizens BancShares and TrustCo Bank Corp NY’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 $1.47 billion 3.65 $225.48 million $26.81 16.67
TrustCo Bank Corp NY $180.37 million 4.88 $42.60 million $0.48 19.06

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

Summary

TrustCo Bank Corp NY beats First Citizens BancShares on 9 of the 14 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 TrustCo Bank Corp NY

TrustCo Bank Corp NY is a savings and loan holding company. The Company’s principal subsidiary is Trustco Bank (the Bank). The Bank is a federal savings bank engaged in providing general banking services to individuals, partnerships and corporations. It operates through community banking segment. The Bank’s business consists of accepting deposits and making loans and investments. The Bank provides both personal and business banking services. The Bank’s subsidiary, Trustco Realty Corp., is a real estate investment trust (REIT) formed to acquire, hold and manage real estate mortgage assets, including residential mortgage loans and mortgage backed securities. The Bank’s trust department operates under the name, Trustco Financial Services, and serves as executor of estates and trustee of personal trusts, provides asset and wealth management services, and provides estate planning and related advice, provides custodial services.

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