Third Coast Bancshares (NASDAQ:TCBX) versus First Citizens BancShares (NASDAQ:FCNCA) Financial Review

Third Coast Bancshares (NASDAQ:TCBX) and First Citizens BancShares (NASDAQ:FCNCA) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Analyst Recommendations

This is a summary of recent recommendations for Third Coast Bancshares and First Citizens BancShares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Third Coast Bancshares	0	2	3	0	2.60
First Citizens BancShares	0	9	3	1	2.38

Third Coast Bancshares presently has a consensus price target of $45.00, indicating a potential upside of 14.61%. First Citizens BancShares has a consensus price target of $2,215.91, indicating a potential upside of 6.79%. Given Third Coast Bancshares’ stronger consensus rating and higher probable upside, equities analysts plainly believe Third Coast Bancshares is more favorable than First Citizens BancShares.

Profitability

This table compares Third Coast Bancshares and First Citizens BancShares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Third Coast Bancshares	16.30%	12.05%	1.17%
First Citizens BancShares	15.62%	11.48%	1.03%

Insider and Institutional Ownership

36.9% of Third Coast Bancshares shares are held by institutional investors. Comparatively, 78.0% of First Citizens BancShares shares are held by institutional investors. 10.5% of Third Coast Bancshares shares are held by insiders. Comparatively, 14.6% of First Citizens BancShares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 43.0%. First Citizens BancShares pays an annual dividend of $8.40 per share and has a dividend yield of 0.4%. Third Coast Bancshares pays out 433.7% 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 pays out 4.8% of its earnings in the form of a dividend. First Citizens BancShares has raised its dividend for 8 consecutive years.

Valuation & Earnings

This table compares Third Coast Bancshares and First Citizens BancShares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Third Coast Bancshares	$219.24 million	2.97	$47.67 million	$3.89	10.09
First Citizens BancShares	$14.51 billion	1.66	$2.21 billion	$173.88	11.93

First Citizens BancShares has higher revenue and earnings than Third Coast Bancshares. Third Coast Bancshares 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.

Volatility and Risk

Third Coast Bancshares has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, First Citizens BancShares has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Summary

First Citizens BancShares beats Third Coast Bancshares on 9 of the 17 factors compared between the two stocks.

About Third Coast Bancshares

Third Coast Bancshares, Inc. operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit. It also offers commercial and industrial loans, equipment loans, working capital lines of credit, guaranteed loans, auto finance, letters of credit, commercial and residential real estate, and construction, development, and other loans. In addition, the company provides retail and commercial online banking platforms, mobile banking apps, mortgage, treasury management solutions, merchant card services, and customer digital solutions, as well as debit and credit cards. Third Coast Bancshares, Inc. was founded in 2008 and is headquartered in Humble, Texas.

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.