Community Bancorp (NASDAQ:CMTV – Get Free Report) and First Citizens BancShares (NASDAQ:FCNCA – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.
Profitability
This table compares Community Bancorp and First Citizens BancShares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Community Bancorp | 25.65% | 15.97% | 1.50% |
| First Citizens BancShares | 16.28% | 12.07% | 1.06% |
Dividends
Community Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.5%. First Citizens BancShares pays an annual dividend of $8.40 per share and has a dividend yield of 0.4%. Community Bancorp pays out 30.4% of its earnings in the form of a dividend. First Citizens BancShares pays out 4.5% 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 raised its dividend for 8 consecutive years.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Community Bancorp | $51.23 million | 4.45 | $16.97 million | $3.29 | 12.38 |
| First Citizens BancShares | $14.51 billion | 1.66 | $2.21 billion | $187.04 | 11.38 |
First Citizens BancShares has higher revenue and earnings than Community Bancorp. First Citizens BancShares is trading at a lower price-to-earnings ratio than Community Bancorp, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Community Bancorp has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, First Citizens BancShares has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.
Institutional & Insider Ownership
78.0% of First Citizens BancShares shares are owned by institutional investors. 6.6% of Community Bancorp shares are owned by insiders. Comparatively, 14.6% of First Citizens BancShares shares are owned 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 Community Bancorp and First Citizens BancShares, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Community Bancorp | 0 | 0 | 1 | 0 | 3.00 |
| First Citizens BancShares | 0 | 10 | 3 | 1 | 2.36 |
First Citizens BancShares has a consensus target price of $2,278.31, suggesting a potential upside of 7.03%. Given First Citizens BancShares’ higher probable upside, analysts clearly believe First Citizens BancShares is more favorable than Community Bancorp.
Summary
First Citizens BancShares beats Community Bancorp on 11 of the 18 factors compared between the two stocks.
About Community Bancorp
Community Bancorp. operates as the bank holding company for Community National Bank that provides a range of retail banking services to residents, businesses, nonprofit organizations, and municipalities. It provides various consumer banking products and services, including checking accounts, savings programs, ATMs, debit/credit cards, and night deposit facilities, as well as online, mobile, and telephone banking. The company’s business banking products and services comprise credit products for various business purposes, including financing for commercial business properties, equipment, inventories, and accounts receivable, as well as letters of credit; and business checking and other deposit accounts, cash management services, repurchase agreements, ACH and wire transfer services, and remote deposit capture. It offers commercial real estate lending products for commercial developers and investors, residential builders and developers, and community development entities, which include credit products to facilitate the purchase of land and/or build structures for business, for investors to develop residential or commercial properties, and for real estate secured financing of existing businesses, as well as financing to startups and other small businesses. The company’s residential real estate lending products include fixed-rate and adjustable rate residential mortgage and home equity loans; retail credit products include personal, automobile, and boat/recreational vehicle loans; and municipal and institutional banking products and services for state and local governments, schools, charities, membership, and not-for-profit associations comprise deposit accounts, tax-exempt loans, lines of credit, and term loans, as well as a collateralized secured deposit products. It operates through a main office in Derby; and eleven branch offices in northeastern and central Vermont. Community Bancorp. was founded in 1851 and is headquartered in Derby, Vermont.
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.
Receive News & Ratings for Community Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Community Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.
