MetroCity Bankshares (MCBS) and Its Competitors Head to Head Review

MetroCity Bankshares (NASDAQ:MCBS) is one of 919 public companies in the “Banks” industry, but how does it contrast to its competitors? We will compare MetroCity Bankshares to related companies based on the strength of its valuation, risk, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Dividends

MetroCity Bankshares pays an annual dividend of $1.24 per share and has a dividend yield of 3.4%. MetroCity Bankshares pays out 40.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.0% and pay out 28.9% of their earnings in the form of a dividend. MetroCity Bankshares lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares MetroCity Bankshares and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MetroCity Bankshares	29.44%	15.68%	1.87%
MetroCity Bankshares Competitors	15.65%	9.44%	0.93%

Risk and Volatility

MetroCity Bankshares has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, MetroCity Bankshares’ competitors have a beta of 0.61, suggesting that their average stock price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for MetroCity Bankshares and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MetroCity Bankshares	0	1	1	0	2.50
MetroCity Bankshares Competitors	7484	30232	27812	1478	2.35

MetroCity Bankshares presently has a consensus price target of $33.00, indicating a potential downside of 9.34%. As a group, “Banks” companies have a potential upside of 14.86%. Given MetroCity Bankshares’ competitors higher probable upside, analysts clearly believe MetroCity Bankshares has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares MetroCity Bankshares and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
MetroCity Bankshares	$190.11 million	$68.53 million	11.93
MetroCity Bankshares Competitors	$256.29 billion	$2.42 billion	21.29

MetroCity Bankshares’ competitors have higher revenue and earnings than MetroCity Bankshares. MetroCity Bankshares is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

25.3% of MetroCity Bankshares shares are owned by institutional investors. Comparatively, 47.9% of shares of all “Banks” companies are owned by institutional investors. 20.2% of MetroCity Bankshares shares are owned by company insiders. Comparatively, 9.7% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

MetroCity Bankshares competitors beat MetroCity Bankshares on 8 of the 15 factors compared.

MetroCity Bankshares Company Profile

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.