Financial Review: First Community (NASDAQ:FCCO) and MetroCity Bankshares (NASDAQ:MCBS)
First Community (NASDAQ:FCCO – Get Rating) and MetroCity Bankshares (NASDAQ:MCBS – Get Rating) are both small cap finance companies, but which stock is superior? We’ll compare the two companies based on their risk strength, earnings, institutional ownership, profitability, dividends, analyst recommendations, and valuation.
Benefits and evaluation
This table compares the revenue, earnings per share and valuation of First Community and MetroCity Bankshares.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|First community||$61.42 million||2h30||$15.47 million||$2.08||9.00|
|MetroCity Banking Stocks||$142.54 million||3.66||$61.70 million||$2.66||7.70|
MetroCity Bankshares has higher revenue and profit than First Community. MetroCity Bankshares trades at a lower price-to-earnings ratio than First Community, indicating that it is currently the more affordable of the two stocks.
Volatility and risk
First Community has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. In comparison, MetroCity Bankshares has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.
This is a summary of recent ratings and target prices for First Community and MetroCity Bankshares, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|MetroCity Banking Stocks||0||0||0||0||N / A|
First Community currently has a consensus target price of $23.00, which suggests a potential upside of 22.86%. Given First Community’s possible higher upside, analysts clearly believe that First Community is more favorable than MetroCity Bankshares.
This table compares the net margins, return on equity and return on assets of First Community and MetroCity Bankshares.
|Net margins||Return on equity||return on assets|
|MetroCity Banking Stocks||45.04%||23.89%||2.37%|
First Community pays an annual dividend of $0.52 per share and has a dividend yield of 2.8%. MetroCity Bankshares pays an annual dividend of $0.60 per share and has a dividend yield of 2.9%. First Community pays 25.0% of its earnings as a dividend. MetroCity Bankshares pays 22.6% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. First Community has increased its dividend for 1 consecutive years. MetroCity Bankshares is clearly the best dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
56.7% of First Community shares are held by institutional investors. By comparison, 21.5% of MetroCity Bankshares’ shares are held by institutional investors. 4.0% of the shares of First Community are held by insiders of the company. By comparison, 27.3% of MetroCity Bankshares shares are held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock is poised for long-term growth.
MetroCity Bankshares beats First Community on 11 out of 15 factors compared between the two stocks.
About the first community (Get a rating)
First Community Corporation operates as a bank holding company for First Community Bank which offers various commercial and retail banking products and services to small and medium-sized businesses, professionals and individuals. The Company operates through the Commercial and Retail Banking, Mortgage Banking, and Investment and Non-Deposit Advisory segments. Its deposit products include individual checking, NOW, savings and retirement accounts; and demand deposits, as well as other term deposits, such as daily money market accounts and longer-term certificates of deposit. The Company’s loan portfolio includes commercial loans which consist of secured and unsecured loans for working capital, business expansion and the purchase of equipment and machinery; consumer loans, including secured and unsecured loans for financing automobiles, home improvements, education and personal investments; loans for the construction and acquisition of real estate; and fixed and variable rate mortgages. It also provides other banking services, including online banking, Internet banking, cash management, safety deposit boxes, travelers checks, direct deposit of payroll and social security checks and automatic drafts for various accounts. In addition, the Company offers non-deposit investment products and other investment brokerage services; VISA and MasterCard credit card services; investment advisory services; and insurance services. It operates 21 full-service offices located in Lexington County, Richland County, Newberry County, Kershaw County, Greenville County, Anderson County, Pickens County and Aiken County. , South Carolina; and Richmond County and Columbia County, Georgia. The company was incorporated in 1994 and is headquartered in Lexington, South Carolina.
About MetroCity Bankshares (Get a rating)
MetroCity Bankshares, Inc. operates as a bank holding company for Metro City Bank which provides banking products and services in the United States. It provides personal and business checking accounts, savings accounts, certificates of deposit, money transfers and other banking services. The Company also offers construction and development services, commercial, commercial and industrial real estate, single-family residential mortgages, small business administration and other consumer loans; and online banking, cash management, wire transfers, automated clearinghouse and cash management services. It serves small and medium enterprises, individuals, companies, municipalities and other entities. The company operates 19 full-service branches in Alabama, Florida, Georgia, New York, New Jersey, Texas and Virginia. The company was founded in 2006 and is based in Doraville, Georgia.
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