Financial Analysis: CNB Financial (NASDAQ:CCNE) & First Citizens BancShares (NASDAQ:FCNCA)

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

Institutional and Insider Ownership

52.3% of CNB Financial shares are held by institutional investors. Comparatively, 78.0% of First Citizens BancShares shares are held by institutional investors. 2.9% of CNB Financial shares are held by insiders. Comparatively, 13.4% of First Citizens BancShares shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for CNB Financial and First Citizens BancShares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CNB Financial	0	1	0	0	2.00
First Citizens BancShares	0	5	6	1	2.67

CNB Financial currently has a consensus target price of $30.00, suggesting a potential upside of 9.45%. First Citizens BancShares has a consensus target price of $2,157.64, suggesting a potential upside of 3.99%. Given CNB Financial’s higher possible upside, equities analysts plainly believe CNB Financial is more favorable than First Citizens BancShares.

Dividends

CNB Financial pays an annual dividend of $0.72 per share and has a dividend yield of 2.6%. First Citizens BancShares pays an annual dividend of $7.80 per share and has a dividend yield of 0.4%. CNB Financial pays out 30.8% of its earnings in the form of a dividend. First Citizens BancShares pays out 4.5% 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.

Risk and Volatility

CNB Financial has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, First Citizens BancShares has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CNB Financial	$220.04 million	2.62	$58.02 million	$2.34	11.71
First Citizens BancShares	$9.67 billion	3.00	$11.47 billion	$174.55	11.89

First Citizens BancShares has higher revenue and earnings than CNB Financial. CNB Financial 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CNB Financial	14.90%	10.13%	0.91%
First Citizens BancShares	17.36%	13.63%	1.33%

Summary

First Citizens BancShares beats CNB Financial on 15 of the 17 factors compared between the two stocks.

About CNB Financial

CNB Financial Corporation operates as the bank holding company for CNB Bank that provides a range of banking products and services for individual, business, governmental, and institutional customers. The company accepts checking, savings, and time deposit accounts; and offers real estate, commercial, industrial, residential, and consumer loans, as well as various other specialized financial services. It also provides private banking; and wealth and asset management services, including the administration of trusts and estates, retirement plans, and other employee benefit plans, as well as a range of wealth management services. In addition, the company invests in debt and equity securities; sells nonproprietary annuities and other insurance products; and offers small balance unsecured loans and secured loans primarily collateralized by automobiles and equipment, as well as engages in consumer discount loan and finance business. The company was founded in 1865 and is headquartered in Clearfield, Pennsylvania.

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.