Reviewing MetroCity Bankshares (NASDAQ:MCBS) and Banco Santander Chile (NYSE:BSAC)

MetroCity Bankshares (NASDAQ:MCBS) and Banco Santander Chile (NYSE:BSAC) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Profitability

This table compares MetroCity Bankshares and Banco Santander Chile’s 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%
Banco Santander Chile	27.04%	22.94%	1.70%

Analyst Ratings

This is a breakdown of recent ratings and price targets for MetroCity Bankshares and Banco Santander Chile, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MetroCity Bankshares	0	1	1	0	2.50
Banco Santander Chile	1	4	3	1	2.44

MetroCity Bankshares presently has a consensus target price of $33.00, indicating a potential downside of 6.06%. Banco Santander Chile has a consensus target price of $35.20, indicating a potential upside of 7.69%. Given Banco Santander Chile’s higher probable upside, analysts clearly believe Banco Santander Chile is more favorable than MetroCity Bankshares.

Earnings & Valuation

This table compares MetroCity Bankshares and Banco Santander Chile”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	4.11	$68.53 million	$2.88	12.20
Banco Santander Chile	$4.50 billion	3.42	$1.12 billion	$2.62	12.48

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

Volatility and Risk

MetroCity Bankshares has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Banco Santander Chile has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Insider & Institutional Ownership

25.3% of MetroCity Bankshares shares are owned by institutional investors. Comparatively, 6.4% of Banco Santander Chile shares are owned by institutional investors. 20.2% of MetroCity Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

MetroCity Bankshares pays an annual dividend of $1.16 per share and has a dividend yield of 3.3%. Banco Santander Chile pays an annual dividend of $1.10 per share and has a dividend yield of 3.4%. MetroCity Bankshares pays out 40.3% of its earnings in the form of a dividend. Banco Santander Chile pays out 42.0% 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.

Summary

MetroCity Bankshares beats Banco Santander Chile on 9 of the 17 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 Banco Santander Chile

Banco Santander-Chile, together with its subsidiaries, provides commercial and retail banking services in Chile. It operates through Retail Banking, Middle-Market, Corporate Investment Banking, and Corporate Activities segments. The company offers debit and credit cards, checking accounts, and savings products; consumer, automobile, commercial, mortgage, and government-guaranteed loans; and Chilean peso and foreign currency-denominated loans to finance various commercial transactions, trade, foreign currency forward contracts, and credit lines, as well as mortgage financing services. It also provides mutual fund management, insurance and securities brokerage, foreign exchange services, financial leasing, financial consulting and advisory, investment management, foreign trade, leasing, factoring, treasury, and transactional services, as well as specialized services to finance residential projects. In addition, the company offers short-term financing and fundraising, and brokerage services, as well as derivatives, securitization, and other products; and manages capital allocations. It serves individuals, small to middle-sized entities, companies, and large corporations, as well as universities, government entities, and local and regional governments. The company was incorporated in 1977 and is headquartered in Santiago, Chile. Banco Santander-Chile operates as a subsidiary of Banco Santander, S.A.