Analyzing First Citizens BancShares (NASDAQ:FCNCA) & Berkshire Bancorp (OTCMKTS:BERK)

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

Insider and Institutional Ownership

61.2% of First Citizens BancShares shares are held by institutional investors. 70.4% of Berkshire Bancorp shares are held by insiders. Comparatively, 13.4% of First Citizens BancShares shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Berkshire Bancorp	0	0	0	0	N/A
First Citizens BancShares	0	3	5	0	2.63

First Citizens BancShares has a consensus target price of $1,774.83, suggesting a potential upside of 8.55%. Given First Citizens BancShares’ higher probable upside, analysts clearly believe First Citizens BancShares is more favorable than Berkshire Bancorp.

Valuation and Earnings

This table compares Berkshire Bancorp and First Citizens BancShares’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Berkshire Bancorp	$20.05 million	N/A	$2.70 million	N/A	N/A
First Citizens BancShares	$12.09 billion	1.96	$11.47 billion	$784.51	2.08

First Citizens BancShares has higher revenue and earnings than Berkshire Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Berkshire Bancorp	N/A	N/A	N/A
First Citizens BancShares	51.04%	13.52%	1.22%

Summary

First Citizens BancShares beats Berkshire Bancorp on 8 of the 9 factors compared between the two stocks.

About Berkshire Bancorp

Berkshire Bancorp Inc. operates as the bank holding company for The Berkshire Bank that provides community banking services primarily to businesses, professionals, and retail customers. The company offers statement savings, NOW, money market deposit, and checking accounts, as well as certificates of deposit. It also provides commercial and industrial, commercial and residential real estate, multi-family real estate, construction, and consumer loans, as well as mortgages and finance leasing services. In addition, the company offers ATM and debit cards; safe deposit boxes; bill pay, collection, remote deposit capture, and foreign exchange services; and mobile, telephone, and online banking services. It operates through two branches located in Manhattan; four branches located in Brooklyn, New York; four branches located in Orange and Sullivan Counties in New York State; and one branch located in Teaneck, New Jersey. Berkshire Bancorp Inc. was founded in 1871 and is headquartered in New York, New York.

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.