MetroCity Bankshares (NASDAQ:MCBS) versus First Community Bancshares (NASDAQ:FCBC) Financial Contrast

MetroCity Bankshares (NASDAQ:MCBS) and First Community Bancshares (NASDAQ:FCBC) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Analyst Ratings

This is a breakdown of current ratings and price targets for MetroCity Bankshares and First Community Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MetroCity Bankshares	0	1	1	0	2.50
First Community Bancshares	0	2	1	0	2.33

MetroCity Bankshares presently has a consensus target price of $33.00, indicating a potential downside of 6.70%. Given MetroCity Bankshares’ stronger consensus rating and higher possible upside, analysts clearly believe MetroCity Bankshares is more favorable than First Community Bancshares.

Earnings and Valuation

This table compares MetroCity Bankshares and First Community Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MetroCity Bankshares	$246.01 million	4.14	$68.53 million	$2.88	12.28
First Community Bancshares	$185.42 million	4.87	$48.79 million	$3.17	15.05

MetroCity Bankshares has higher revenue and earnings than First Community Bancshares. MetroCity Bankshares is trading at a lower price-to-earnings ratio than First Community Bancshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares MetroCity Bankshares and First Community Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MetroCity Bankshares	28.40%	15.16%	1.82%
First Community Bancshares	28.84%	10.67%	1.61%

Risk and Volatility

MetroCity Bankshares has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, First Community Bancshares has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.

Institutional and Insider Ownership

25.3% of MetroCity Bankshares shares are held by institutional investors. Comparatively, 35.0% of First Community Bancshares shares are held by institutional investors. 20.2% of MetroCity Bankshares shares are held by insiders. Comparatively, 3.7% of First Community Bancshares shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

MetroCity Bankshares pays an annual dividend of $1.16 per share and has a dividend yield of 3.3%. First Community Bancshares pays an annual dividend of $1.32 per share and has a dividend yield of 2.8%. MetroCity Bankshares pays out 40.3% of its earnings in the form of a dividend. First Community Bancshares pays out 41.6% 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 Community Bancshares has raised its dividend for 13 consecutive years. MetroCity Bankshares is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

MetroCity Bankshares beats First Community Bancshares on 10 of the 16 factors compared between the two stocks.

About MetroCity Bankshares

MetroCity Bankshares, Inc. operates as the bank holding company for Metro City Bank that engages in the provision of banking products and services in the United States. It offers customary banking services, such as consumer and commercial checking accounts, savings, and money market accounts, as well as certificates of deposit. The company also provides commercial and consumer loans, including single family residential loans; construction and development, and owner and non-owner occupied commercial real estate loans; letters of credit; and commercial and industrial loans, residential mortgage loans, and SBA loans. In addition, it offers online banking services, which include access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; mobile banking solutions, such as remote check deposit with mobile bill pay; and automated teller machines and telephone banking services. Further, it provides debit cards for checking customers, direct deposits, and cashier's checks; treasury management services, including wire transfer, automated clearing house, and stop payments services; and cash management deposit products, such as remote deposit capture, positive pay, zero balance accounts, and sweep accounts. The company was founded in 2006 and is headquartered in Atlanta, Georgia.

About First Community Bancshares

First Community Bankshares, Inc. operates as the financial holding company for First Community Bank that provides various banking products and services. It offers demand deposit accounts, savings and money market accounts, certificates of deposit, and individual retirement plans; and commercial, consumer real estate, and consumer and other loans. The company also provides trust management, estate administration, and investment advisory services; and investment management services. It serves individuals and businesses across various industries, such as education, government, and health services; coal mining and gas extraction; retail trade; construction; manufacturing; tourism; and transportation. The company operates through branches in West Virginia, Virginia, North Carolina, and Tennessee. Community Bankshares, Inc. was founded in 1874 and is headquartered in Bluefield, Virginia.