Head to Head Review: Red River Bancshares (NASDAQ:RRBI) & First Citizens BancShares (NASDAQ:FCNCA)

Red River Bancshares (NASDAQ:RRBI) and First Citizens BancShares (NASDAQ:FCNCA) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Earnings and Valuation

This table compares Red River Bancshares 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
Red River Bancshares	$108.84 million	3.28	$34.24 million	$4.96	10.60
First Citizens BancShares	$9.73 billion	2.41	$2.78 billion	$189.43	9.12

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

Dividends

Red River Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 0.9%. First Citizens BancShares pays an annual dividend of $7.80 per share and has a dividend yield of 0.5%. Red River Bancshares pays out 9.7% of its earnings in the form of a dividend. First Citizens BancShares pays out 4.1% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Red River Bancshares	21.71%	11.04%	1.11%
First Citizens BancShares	18.55%	13.22%	1.30%

Institutional and Insider Ownership

27.5% of Red River Bancshares shares are owned by institutional investors. Comparatively, 78.0% of First Citizens BancShares shares are owned by institutional investors. 16.4% of Red River Bancshares 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 company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Red River Bancshares and First Citizens BancShares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red River Bancshares	0	0	0	0	0.00
First Citizens BancShares	0	5	8	0	2.62

First Citizens BancShares has a consensus target price of $2,323.50, indicating a potential upside of 34.43%. Given First Citizens BancShares’ stronger consensus rating and higher possible upside, analysts clearly believe First Citizens BancShares is more favorable than Red River Bancshares.

Volatility and Risk

Red River Bancshares has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, First Citizens BancShares has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Summary

First Citizens BancShares beats Red River Bancshares on 11 of the 16 factors compared between the two stocks.

About Red River Bancshares

Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit. In addition, the company provides treasury management, private banking, and brokerage; investment advisory, financial planning, and a suite of retirement plans; debit and credit cards, direct deposits, cashier's checks, and wire transfer services; online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and banking services in person, through ATMs, drive-through facilities, night deposits, telephone, mail, mobile banking, and remote deposits. Red River Bancshares, Inc. was incorporated in 1998 and is headquartered in Alexandria, Louisiana.

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.