Critical Review: MetroCity Bankshares (NASDAQ:MCBS) and Fvcbankcorp (NASDAQ:FVCB)

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

Valuation & Earnings

This table compares MetroCity Bankshares and Fvcbankcorp”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	$235.98 million	2.75	$64.50 million	$2.58	9.88
Fvcbankcorp	$115.85 million	1.93	$15.06 million	$1.16	10.65

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

Insider and Institutional Ownership

25.3% of MetroCity Bankshares shares are owned by institutional investors. Comparatively, 43.6% of Fvcbankcorp shares are owned by institutional investors. 27.5% of MetroCity Bankshares shares are owned by insiders. Comparatively, 14.0% of Fvcbankcorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

MetroCity Bankshares has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Fvcbankcorp has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Profitability

This table compares MetroCity Bankshares and Fvcbankcorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MetroCity Bankshares	28.25%	15.39%	1.84%
Fvcbankcorp	17.72%	8.85%	0.96%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MetroCity Bankshares	0	2	0	0	2.00
Fvcbankcorp	0	2	1	0	2.33

MetroCity Bankshares currently has a consensus price target of $31.00, suggesting a potential upside of 21.64%. Fvcbankcorp has a consensus price target of $16.00, suggesting a potential upside of 29.55%. Given Fvcbankcorp’s stronger consensus rating and higher probable upside, analysts clearly believe Fvcbankcorp is more favorable than MetroCity Bankshares.

Dividends

MetroCity Bankshares pays an annual dividend of $1.00 per share and has a dividend yield of 3.9%. Fvcbankcorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.9%. MetroCity Bankshares pays out 38.8% of its earnings in the form of a dividend. Fvcbankcorp pays out 20.7% 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 Fvcbankcorp 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 Fvcbankcorp

FVCBankcorp, Inc. operates as the bank holding company for FVCbank that provides various banking products and services in Virginia. It offers deposit products, including interest and noninterest-bearing transaction accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides commercial real estate loans; commercial construction loans; commercial loans for various business purposes, such as for working capital, equipment purchases, lines of credit, and government contract financing; small business administration loans; asset-based loans and accounts receivable financing; home equity loans; and consumer loans. In addition, it offers business and consumer credit cards; merchant services; business insurance products; and online banking, remote deposit, and mobile banking services. The company serves commercial businesses, nonprofit organizations, professional service entities, and their respective owners and employees located in the greater Washington, D.C., and Baltimore metropolitan areas. It operates branch offices in Arlington, Virginia; the independent city of Manassas, Virginia; Reston, Fairfax County, Virginia; Springfield, Fairfax County in Virginia; and Montgomery County and Baltimore in Maryland, and Washington, D.C. FVCBankcorp, Inc. was founded in 2007 and is headquartered in Fairfax, Virginia.