Brookline Bancorp (BRKL) vs. First Citizens BancShares (FCNCA) Head to Head Analysis

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

Dividends

Brookline Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 2.2%. First Citizens BancShares pays an annual dividend of $1.40 per share and has a dividend yield of 0.3%. Brookline Bancorp pays out 46.2% of its earnings in the form of a dividend. First Citizens BancShares pays out 5.2% 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Brookline Bancorp 19.82% 7.52% 0.87%
First Citizens BancShares 20.60% 10.17% 0.94%

Institutional and Insider Ownership

77.7% of Brookline Bancorp shares are owned by institutional investors. Comparatively, 44.8% of First Citizens BancShares shares are owned by institutional investors. 2.9% of Brookline Bancorp shares are owned by company insiders. Comparatively, 19.4% of First Citizens BancShares 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 Brookline Bancorp and First Citizens BancShares’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brookline Bancorp $262.32 million 4.75 $52.36 million $0.78 20.83
First Citizens BancShares $1.47 billion 3.63 $225.48 million $26.81 16.59

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

Risk and Volatility

Brookline Bancorp has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, First Citizens BancShares has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Brookline Bancorp and First Citizens BancShares, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookline Bancorp 0 3 1 0 2.25
First Citizens BancShares 0 0 0 0 N/A

Brookline Bancorp currently has a consensus target price of $16.33, suggesting a potential upside of 0.51%. Given Brookline Bancorp’s higher possible upside, equities research analysts plainly believe Brookline Bancorp is more favorable than First Citizens BancShares.

Summary

First Citizens BancShares beats Brookline Bancorp on 9 of the 15 factors compared between the two stocks.

About Brookline Bancorp

Brookline Bancorp, Inc. operates as a multi-bank holding company for Brookline Bank and its subsidiaries; Bank Rhode Island (BankRI) and its subsidiaries; First Ipswich Bank (First Ipswich) and its subsidiaries, and Brookline Securities Corp. As a commercially focused financial institution with 50 full-service banking offices throughout greater Boston, the north shore of Massachusetts and Rhode Island, the Company, through Brookline Bank, BankRI and First Ipswich (individually and collectively the Banks), offered a range of commercial, business and retail banking services, including cash management products, online banking services, consumer and residential loans and investment services throughout central New England, as of December 31, 2016. The Company also provides specialty equipment financing through its subsidiaries, Eastern Funding LLC and Macrolease Corporation.

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.

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