Critical analysis of First Citizens BancShares (NASDAQ:FCNCA) and Tompkins Financial (NYSE:TMP)


First Citizens BancShares (NASDAQ: FCNCAGet a rating) and Tompkins Financial (NYSE: TMPGet a rating) are both finance companies, but which is the better investment? We’ll compare the two companies based on their dividend strength, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of the current ratings and recommendations for First Citizens BancShares and Tompkins Financial, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
First Citizens BancShares 0 0 3 0 3.00
Tompkins Financial 0 0 0 0 N / A

First Citizens BancShares currently has a consensus target price of $991.67, suggesting a potential upside of 42.99%. Given the possible higher upside of First Citizens BancShares, stock analysts clearly believe that First Citizens BancShares is more favorable than Tompkins Financial.

Institutional and Insider Ownership

39.1% of First Citizens BancShares shares are held by institutional investors. By comparison, 59.3% of Tompkins Financial’s shares are held by institutional investors. 13.4% of the shares of First Citizens BancShares are held by insiders of the company. By comparison, 4.3% of Tompkins Financial’s stock is held by insiders of the company. Strong institutional ownership indicates that large money managers, endowments, and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares the net margins, return on equity and return on assets of First Citizens BancShares and Tompkins Financial.

Net margins Return on equity return on assets
First Citizens BancShares 22.17% 11.95% 0.96%
Tompkins Financial 27.19% 12.69% 1.13%

Valuation and benefits

This chart compares the gross earnings, earnings per share (EPS), and valuation of First Citizens BancShares and Tompkins Financial.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
First Citizens BancShares $1.96 billion 5.66 $547.46 million $56.05 12:37
Tompkins Financial $320.17 million 3.37 $89.26 million $5.92 12:55 p.m.

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

Dividends

First Citizens BancShares pays an annual dividend of $1.88 per share and has a dividend yield of 0.3%. Tompkins Financial pays an annual dividend of $2.28 per share and has a dividend yield of 3.1%. First Citizens BancShares pays 3.4% of its profits as a dividend. Tompkins Financial pays 38.5% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Tompkins Financial has increased its dividend for 36 consecutive years. Tompkins Financial is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

First Citizens BancShares has a beta of 1.04, suggesting its stock price is 4% more volatile than the S&P 500. In comparison, Tompkins Financial has a beta of 0.66, suggesting its stock price is 34 % less volatile than the S&P 500.

Summary

First Citizens BancShares beats Tompkins Financial on 9 of the 16 factors compared between the two stocks.

About First Citizens BancShares

(Get a rating)

First Citizens BancShares, Inc. operates as a holding company for First-Citizens Bank & Trust Company which provides retail and commercial banking services to individuals, businesses and professionals. The Company’s deposit products include checking, savings, money market and term accounts. Its portfolio of lending products includes commercial construction and land development, commercial, commercial and industrial mortgages and lease finance loans, as well as paycheck protection program loans for the administration of small enterprises ; and consumer loans, such as residential and revolving mortgages, construction and land development, consumer automobiles and other consumer loans. The Company also offers treasury services products, cardholder and merchant services, wealth management services and various other products and services; investment products, including annuities, discount brokerage services and third-party mutual funds, as well as investment management and advisory services; and defined benefit and defined contribution, insurance, private banking, trust, fiduciary, philanthropy and special asset services. The Company provides its products and services through its branch network, as well as through digital banking, telephone banking and various ATM networks. As of December 31, 2021, it operated 529 branches in Arizona, California, Colorado, Florida, Georgia, Kansas, Maryland, Missouri, North Carolina, New Mexico, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Virginia, Washington, Wisconsin, and West Virginia. First Citizens BancShares, Inc. was founded in 1898 and is headquartered in Raleigh, North Carolina.

About Tompkins Financial

(Get a rating)

Tompkins Financial Corporation, a financial holding company, provides corporate and personal banking, leasing, trust and investment management, financial planning and wealth management, and insurance services. The Company operates in three segments: Banking, Insurance and Wealth Management. It accepts a variety of deposit products, including checking accounts, savings accounts, term deposits, and IRA products, as well as negotiated, reciprocal, and municipal money market deposits. The Company also provides loans for a variety of business purposes, including real estate financing, construction, equipment financing, accounts receivable financing and commercial leasing; residential mortgages; personal loans; residential real estate loans; home equity loans; commercial and industrial loans; commercial real estate loans; agricultural loans; and consumer loans, such as personal installment loans, direct and indirect auto financing, and overdraft lines. In addition, it provides letters of credit and clearing accounts; credit and debit cards; and deposit and cash management, internet account, remote deposit, safe deposit, voice response, ATM, and mobile and internet banking. In addition, the company offers investment management, trust and estate, and financial and tax planning services; property and casualty, medical, life, disability and long-term care insurance services; consulting services relating to employee benefits; and insurance planning services. It primarily serves individuals, corporate executives, small business owners, and high net worth individuals. The company operates through a network of 63 banking offices, including 43 offices in New York and 20 offices in Pennsylvania. Tompkins Financial Corporation was founded in 1836 and is headquartered in Ithaca, New York.



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