Cathay General Bancorp (NASDAQ:CATY) and First Citizens BancShares (NASDAQ:FCNCA) Head-To-Head Analysis

Cathay General Bancorp (NASDAQ:CATYGet Free Report) and First Citizens BancShares (NASDAQ:FCNCAGet Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Earnings & Valuation

This table compares Cathay General 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
Cathay General Bancorp $1.31 billion 2.03 $354.12 million $4.52 8.08
First Citizens BancShares $9.88 billion 2.49 $11.47 billion $180.13 9.41

First Citizens BancShares has higher revenue and earnings than Cathay General Bancorp. Cathay General Bancorp 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.

Dividends

Cathay General Bancorp pays an annual dividend of $1.36 per share and has a dividend yield of 3.7%. First Citizens BancShares pays an annual dividend of $6.56 per share and has a dividend yield of 0.4%. Cathay General Bancorp pays out 30.1% of its earnings in the form of a dividend. First Citizens BancShares pays out 3.6% 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. First Citizens BancShares has increased its dividend for 7 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Cathay General Bancorp 24.41% 13.02% 1.52%
First Citizens BancShares 18.22% 15.48% 1.44%

Institutional & Insider Ownership

75.0% of Cathay General Bancorp shares are owned by institutional investors. Comparatively, 61.2% of First Citizens BancShares shares are owned by institutional investors. 4.8% of Cathay General Bancorp shares are owned by insiders. Comparatively, 13.4% of First Citizens BancShares shares are owned 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.

Volatility & Risk

Cathay General Bancorp has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, First Citizens BancShares has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Cathay General Bancorp and First Citizens BancShares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cathay General Bancorp 1 3 1 0 2.00
First Citizens BancShares 0 5 6 0 2.55

Cathay General Bancorp presently has a consensus price target of $39.00, indicating a potential upside of 6.82%. First Citizens BancShares has a consensus price target of $1,829.90, indicating a potential upside of 7.92%. Given First Citizens BancShares’ stronger consensus rating and higher probable upside, analysts clearly believe First Citizens BancShares is more favorable than Cathay General Bancorp.

Summary

First Citizens BancShares beats Cathay General Bancorp on 12 of the 17 factors compared between the two stocks.

About Cathay General Bancorp

(Get Free Report)

Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States. The company offers various deposit products, including passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, and public funds deposits. It also provides loan products, such as commercial mortgage loans, commercial loans, small business administration loans, residential mortgage loans, real estate construction loans, and home equity lines of credit, as well as installment loans to individuals for household, and other consumer expenditures. In addition, the company offers trade financing, letter of credit, wire transfer, forward currency spot and forward contract, safe deposit, collection, automatic teller machine, Internet banking, investment, and other customary bank services, as well as securities and insurance products. Cathay General Bancorp was founded in 1962 and is headquartered in Los Angeles, California.

About First Citizens BancShares

(Get Free Report)

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.

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