Financial Review: First Citizens BancShares (NASDAQ:FCNCA) versus M&F Bancorp (OTCMKTS:MFBP)

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for First Citizens BancShares and M&F Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Citizens BancShares	0	4	9	0	2.69
M&F Bancorp	0	0	0	0	0.00

First Citizens BancShares presently has a consensus target price of $2,336.58, suggesting a potential upside of 19.61%. Given First Citizens BancShares’ stronger consensus rating and higher possible upside, equities research analysts clearly believe First Citizens BancShares is more favorable than M&F Bancorp.

Dividends

First Citizens BancShares pays an annual dividend of $7.80 per share and has a dividend yield of 0.4%. M&F Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.3%. First Citizens BancShares pays out 4.5% of its earnings in the form of a dividend. First Citizens BancShares has raised its dividend for 8 consecutive years.

Risk & Volatility

First Citizens BancShares has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, M&F Bancorp has a beta of -0.45, indicating that its share price is 145% less volatile than the S&P 500.

Profitability

This table compares First Citizens BancShares and M&F Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Citizens BancShares	18.55%	13.22%	1.30%
M&F Bancorp	N/A	N/A	N/A

Institutional & Insider Ownership

78.0% of First Citizens BancShares shares are owned by institutional investors. 13.4% of First Citizens BancShares shares are owned by insiders. Comparatively, 2.9% of M&F Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares First Citizens BancShares and M&F Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Citizens BancShares	$9.59 billion	2.71	$2.78 billion	$174.64	11.19
M&F Bancorp	$29.33 million	1.20	$4.77 million	N/A	N/A

First Citizens BancShares has higher revenue and earnings than M&F Bancorp.

Summary

First Citizens BancShares beats M&F Bancorp on 13 of the 15 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 M&F Bancorp

M&F Bancorp, Inc. operates as a bank holding company for the Mechanics and Farmers Bank that provides consumer and commercial banking products and services in North Carolina. It offers deposit products, including demand deposits; checking, savings, and money market accounts, as well as certificates of deposit. The company provides loans for commercial and residential real estate, and construction; and consumer and other loans; as well as ATM services. M&F Bancorp, Inc. was founded in 1907 and is headquartered in Durham, North Carolina.