Metropolitan Bank (NYSE:MCB) and Fidelity Southern (NASDAQ:LION) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.

Risk & Volatility

Metropolitan Bank has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, Fidelity Southern has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.

Dividends

Fidelity Southern pays an annual dividend of $0.48 per share and has a dividend yield of 1.7%. Metropolitan Bank does not pay a dividend. Fidelity Southern pays out 29.8% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Metropolitan Bank and Fidelity Southern’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Metropolitan Bank $96.10 million 3.37 $25.39 million $3.06 12.73
Fidelity Southern $320.30 million 2.44 $43.82 million $1.61 17.58

Fidelity Southern has higher revenue and earnings than Metropolitan Bank. Metropolitan Bank is trading at a lower price-to-earnings ratio than Fidelity Southern, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

51.7% of Metropolitan Bank shares are held by institutional investors. Comparatively, 67.5% of Fidelity Southern shares are held by institutional investors. 16.4% of Metropolitan Bank shares are held by insiders. Comparatively, 20.2% of Fidelity Southern 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Metropolitan Bank and Fidelity Southern, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Metropolitan Bank 0 1 0 0 2.00
Fidelity Southern 0 0 2 0 3.00

Fidelity Southern has a consensus target price of $28.50, indicating a potential upside of 0.71%. Given Fidelity Southern’s stronger consensus rating and higher probable upside, analysts clearly believe Fidelity Southern is more favorable than Metropolitan Bank.

Profitability

This table compares Metropolitan Bank and Fidelity Southern’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Metropolitan Bank 27.33% 10.62% 1.29%
Fidelity Southern 12.21% 8.68% 0.79%

Summary

Fidelity Southern beats Metropolitan Bank on 9 of the 16 factors compared between the two stocks.

About Metropolitan Bank

Metropolitan Bank Holding Corp. operates as the bank holding company for Metropolitan Commercial Bank that provides a range of business, commercial, and retail banking products and services to small businesses, middle-market enterprises, public entities, and individuals in the New York metropolitan area. It offers checking, savings, term deposit, and money market accounts, as well as certificates of deposit. The company also provides lending products, including commercial, construction, multifamily, and one-to four-family real estate loans; commercial and industrial loans; trade finance and letters of credit, term loans, and working capital lines of credit; commercial mortgages; and consumer loans. In addition, it offers cash management solutions, such as wire transfers, ACH, and foreign exchange conversion, as well as online and mobile banking, ACH, remote deposit capture, and debit card services. The company was founded in 1999 and is headquartered in New York, New York.

About Fidelity Southern

Fidelity Southern Corporation operates as the bank holding company for Fidelity Bank that provides financial products and services primarily to individuals and small to medium-sized businesses in the United States. The company accepts noninterest-bearing and interest-bearing demand accounts, including money market accounts and savings deposits; and time deposits. It also offers commercial and industrial loans, commercial real estate loans, small business administration loans, indirect automobile loans, and real estate construction loans, as well as consumer loans, including automobile loans, residential mortgage and home equity loans, and secured and unsecured personal loans. In addition, the company provides Internet banking services comprising online bill pay and mobile deposit, and Internet cash management services; and wealth management services, such as trust administration, investment management, financial and estate planning, and specialized lending and banking. Further, it offers cash management, remote deposit, and international trade services; and merchant services and credit cards. Additionally, the company operates an insurance agency that offers consumer credit related insurance products; and issues trust preferred securities. As of December 31, 2018, it owned 59 and leased 10 retail bank branches; and leased 33 mortgage loan production offices. Fidelity Southern Corporation was founded in 1973 and is headquartered in Atlanta, Georgia.

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