Financial Comparison: CNB Financial (NASDAQ:CCNE) vs. First Citizens BancShares (NASDAQ:FCNCA)

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

Dividends

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Citizens BancShares	$12.09 billion	2.49	$11.47 billion	$174.55	12.33
CNB Financial	$327.03 million	1.76	$58.02 million	$2.34	11.71

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 First Citizens BancShares and CNB Financial’s net margins, return on equity and return on assets.

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

Risk & Volatility

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

Institutional and Insider Ownership

78.0% of First Citizens BancShares shares are owned by institutional investors. Comparatively, 52.4% of CNB Financial shares are owned by institutional investors. 12.9% of First Citizens BancShares shares are owned by insiders. Comparatively, 2.9% of CNB Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Citizens BancShares	0	5	6	0	2.55
CNB Financial	0	1	0	0	2.00

First Citizens BancShares currently has a consensus target price of $2,157.64, suggesting a potential upside of 0.24%. CNB Financial has a consensus target price of $30.00, suggesting a potential upside of 9.49%. Given CNB Financial’s higher possible upside, analysts plainly believe CNB Financial is more favorable than First Citizens BancShares.

Summary

First Citizens BancShares beats CNB Financial on 14 of the 16 factors compared between the two stocks.

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.

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.