Analyzing First Citizens BancShares (NASDAQ:FCNCA) and German American Bancorp (NASDAQ:GABC)

German American Bancorp (NASDAQ:GABC) and First Citizens BancShares (NASDAQ:FCNCA) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
German American Bancorp	28.25%	12.14%	1.69%
First Citizens BancShares	16.28%	12.07%	1.06%

Dividends

German American Bancorp pays an annual dividend of $1.24 per share and has a dividend yield of 2.4%. First Citizens BancShares pays an annual dividend of $8.40 per share and has a dividend yield of 0.4%. German American Bancorp pays out 32.7% 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. German American Bancorp has increased its dividend for 13 consecutive years and First Citizens BancShares has increased its dividend for 8 consecutive years. German American Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares German American Bancorp and First Citizens BancShares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
German American Bancorp	$386.18 million	4.95	$112.64 million	$3.79	13.41
First Citizens BancShares	$9.33 billion	2.88	$2.21 billion	$187.04	12.70

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for German American Bancorp and First Citizens BancShares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
German American Bancorp	0	2	2	1	2.80
First Citizens BancShares	0	11	2	1	2.29

German American Bancorp presently has a consensus target price of $53.33, indicating a potential upside of 4.90%. First Citizens BancShares has a consensus target price of $2,280.23, indicating a potential downside of 4.02%. Given German American Bancorp’s stronger consensus rating and higher possible upside, equities research analysts clearly believe German American Bancorp is more favorable than First Citizens BancShares.

Risk & Volatility

German American Bancorp has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, First Citizens BancShares has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Insider and Institutional Ownership

46.9% of German American Bancorp shares are owned by institutional investors. Comparatively, 78.0% of First Citizens BancShares shares are owned by institutional investors. 3.2% of German American Bancorp shares are owned by insiders. Comparatively, 14.6% of First Citizens BancShares shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

German American Bancorp beats First Citizens BancShares on 10 of the 16 factors compared between the two stocks.

About German American Bancorp

German American Bancorp, Inc. operates as a financial holding company for German American Bank that provides retail and commercial banking services. The company operates through three segments: Core Banking, Wealth Management Services, and Insurance Operations. The Core Banking segment accepts deposits from the general public; and originates consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans, as well as sells residential mortgage loans in the secondary market. The Wealth Management segment provides trust, investment advisory, brokerage, and retirement planning services. The Insurance Operations segment offers a range of personal and corporate property and casualty insurance products. It also offers checking, saving, and individual retirement accounts; certificates of deposit; wire transfer; credit cards; home equity, mortgages, and small business; treasury management; and online and mobile banking, bill pay, digital wallet, mobile check deposit, credit score and report, money management, and estatements, as well as wealth advisory. German American Bancorp, Inc. was founded in 1910 and is based in Jasper, Indiana.

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.