Analyzing MetroCity Bankshares (NASDAQ:MCBS) & First Seacoast Bancorp (NASDAQ:FSEA)

First Seacoast Bancorp (NASDAQ:FSEA) and MetroCity Bankshares (NASDAQ:MCBS) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for First Seacoast Bancorp and MetroCity Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Seacoast Bancorp	0	1	0	0	2.00
MetroCity Bankshares	0	1	1	0	2.50

MetroCity Bankshares has a consensus price target of $33.00, indicating a potential downside of 5.66%. Given MetroCity Bankshares’ stronger consensus rating and higher possible upside, analysts clearly believe MetroCity Bankshares is more favorable than First Seacoast Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Seacoast Bancorp	0.15%	0.07%	0.01%
MetroCity Bankshares	28.40%	15.16%	1.82%

Insider and Institutional Ownership

38.4% of First Seacoast Bancorp shares are owned by institutional investors. Comparatively, 25.3% of MetroCity Bankshares shares are owned by institutional investors. 7.8% of First Seacoast Bancorp shares are owned by insiders. Comparatively, 20.2% of MetroCity Bankshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

First Seacoast Bancorp has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500. Comparatively, MetroCity Bankshares has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Valuation & Earnings

This table compares First Seacoast Bancorp and MetroCity Bankshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Seacoast Bancorp	$28.74 million	2.81	-$850,000.00	($0.04)	-429.00
MetroCity Bankshares	$246.01 million	4.09	$68.53 million	$2.88	12.15

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

Summary

MetroCity Bankshares beats First Seacoast Bancorp on 13 of the 14 factors compared between the two stocks.

About First Seacoast Bancorp

First Seacoast Bancorp, Inc. operates as the holding company for First Seacoast Bank that provides commercial and consumer banking services for individuals and businesses. The company offers interest-bearing and non-interest-bearing checking, savings, and money market accounts, as well as time deposits. It also provides various lending products comprising one- to four-family residential real estate loans; commercial real estate and multi-family real estate loans; acquisition, development, and land loans; commercial and industrial loans; home equity loans and lines of credit; and consumer loans. In addition, the company offers wealth management services, such as retirement planning, portfolio management, investment and insurance strategies, business retirement plans, and college planning services. The company was founded in 1890 and is headquartered in Dover, New Hampshire. First Seacoast Bancorp, Inc. is a subsidiary of First Seacoast Bancorp, MHC.

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.