Critical Survey: First Citizens BancShares (NASDAQ:FCNCA) and National Bankshares (NASDAQ:NKSH)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Citizens BancShares	15.99%	11.09%	1.03%
National Bankshares	15.56%	8.81%	0.80%

Dividends

First Citizens BancShares pays an annual dividend of $8.40 per share and has a dividend yield of 0.4%. National Bankshares pays an annual dividend of $1.56 per share and has a dividend yield of 5.3%. First Citizens BancShares pays out 5.0% of its earnings in the form of a dividend. National Bankshares pays out 76.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Citizens BancShares has increased its dividend for 8 consecutive years.

Risk & Volatility

First Citizens BancShares has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, National Bankshares has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for First Citizens BancShares and National Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Citizens BancShares	0	6	7	1	2.64
National Bankshares	0	1	0	0	2.00

First Citizens BancShares presently has a consensus price target of $2,165.83, suggesting a potential upside of 13.69%. Given First Citizens BancShares’ stronger consensus rating and higher possible upside, equities research analysts clearly believe First Citizens BancShares is more favorable than National Bankshares.

Insider & Institutional Ownership

78.0% of First Citizens BancShares shares are held by institutional investors. Comparatively, 29.7% of National Bankshares shares are held by institutional investors. 13.2% of First Citizens BancShares shares are held by insiders. Comparatively, 3.2% of National Bankshares 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.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Citizens BancShares	$14.97 billion	1.58	$2.78 billion	$169.12	11.26
National Bankshares	$52.54 million	3.55	$7.62 million	$2.04	14.35

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

Summary

First Citizens BancShares beats National Bankshares on 14 of the 18 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 National Bankshares

National Bankshares, Inc. operates as the bank holding company for the National Bank of Blacksburg that provides retail and commercial banking products and services to individuals, businesses, non-profits, and local governments. The company accepts interest-bearing and non-interest-bearing demand deposit accounts, money market deposit accounts, savings accounts, certificates of deposit, health savings accounts, and individual retirement accounts. Its loan products include commercial and agricultural, commercial real estate, residential real estate, home equity, and various consumer loan products, as well as loans for the construction of commercial and residential properties. The company also provides business and consumer debit and credit cards; letters of credit, night depository services, safe deposit boxes, utility payment services, and automatic funds transfer; wealth management, trust, and estate services; non-deposit investment and insurance products; and telephone, mobile, and Internet banking services. The company was founded in 1891 and is headquartered in Blacksburg, Virginia.