Head-To-Head Analysis: MetroCity Bankshares (NASDAQ:MCBS) versus First Bancorp (NASDAQ:FBNC)

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for MetroCity Bankshares and First Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MetroCity Bankshares	0	2	0	0	2.00
First Bancorp	0	4	2	0	2.33

MetroCity Bankshares presently has a consensus price target of $31.00, suggesting a potential upside of 18.05%. First Bancorp has a consensus price target of $56.67, suggesting a potential upside of 18.90%. Given First Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe First Bancorp is more favorable than MetroCity Bankshares.

Dividends

MetroCity Bankshares pays an annual dividend of $1.00 per share and has a dividend yield of 3.8%. First Bancorp pays an annual dividend of $0.92 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. First Bancorp pays out 39.3% 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. MetroCity Bankshares is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

25.3% of MetroCity Bankshares shares are held by institutional investors. Comparatively, 68.4% of First Bancorp shares are held by institutional investors. 27.5% of MetroCity Bankshares shares are held by insiders. Comparatively, 3.7% of First Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

MetroCity Bankshares has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, First Bancorp has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MetroCity Bankshares	28.25%	15.55%	1.84%
First Bancorp	17.50%	9.77%	1.19%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MetroCity Bankshares	$235.98 million	2.84	$64.50 million	$2.58	10.18
First Bancorp	$537.14 million	3.68	$76.21 million	$2.34	20.37

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

Summary

First Bancorp beats MetroCity Bankshares on 9 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 First Bancorp

First Bancorp operates as the bank holding company for First Bank that provides banking products and services for individuals and small to medium-sized businesses. The company accepts deposit products, such as checking, savings, and money market accounts, as well as time deposits, including certificate of deposits and individual retirement accounts. It also offers loans for a range of consumer and commercial purposes comprising loans for business, real estate, personal, home improvement, and automobiles, as well as residential mortgages and small business administration loans; and accounts receivable financing and factoring, inventory financing, and purchase order financing services. In addition, the company provides credit and debit cards, letter of credits, and safe deposit box rental services, as well as electronic funds transfer services consisting of wire transfers; and internet and mobile banking, cash management, bank-by-phone services, and remote deposit capture services. Further, it offers investment and insurance products, such as mutual funds, annuities, long-term care insurance, life insurance, and company retirement plans, as well as property and casualty insurance products; and financial planning services. The company was founded in 1934 and is headquartered in Southern Pines, North Carolina.