MetroCity Bankshares (NASDAQ:MCBS – Get Free Report) and First Citizens BancShares (NASDAQ:FCNCA – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.
Risk & Volatility
MetroCity Bankshares has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, First Citizens BancShares has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.
Earnings and Valuation
This table compares MetroCity Bankshares and First Citizens BancShares”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MetroCity Bankshares | $168.25 million | 6.23 | $68.53 million | $2.77 | 13.20 |
| First Citizens BancShares | $14.51 billion | 1.73 | $2.21 billion | $173.88 | 12.43 |
First Citizens BancShares has higher revenue and earnings than MetroCity Bankshares. First Citizens BancShares is trading at a lower price-to-earnings ratio than MetroCity Bankshares, indicating that it is currently the more affordable of the two stocks.
Dividends
MetroCity Bankshares pays an annual dividend of $1.16 per share and has a dividend yield of 3.2%. First Citizens BancShares pays an annual dividend of $8.40 per share and has a dividend yield of 0.4%. MetroCity Bankshares pays out 41.9% of its earnings in the form of a dividend. First Citizens BancShares pays out 4.8% 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. First Citizens BancShares has raised its dividend for 8 consecutive years.
Insider & Institutional Ownership
25.3% of MetroCity Bankshares shares are held by institutional investors. Comparatively, 78.0% of First Citizens BancShares shares are held by institutional investors. 27.5% of MetroCity Bankshares shares are held by company insiders. Comparatively, 14.6% of First Citizens BancShares shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings for MetroCity Bankshares and First Citizens BancShares, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MetroCity Bankshares | 0 | 1 | 1 | 0 | 2.50 |
| First Citizens BancShares | 0 | 11 | 2 | 1 | 2.29 |
MetroCity Bankshares presently has a consensus price target of $33.00, indicating a potential downside of 9.76%. First Citizens BancShares has a consensus price target of $2,258.85, indicating a potential upside of 4.54%. Given First Citizens BancShares’ higher probable upside, analysts clearly believe First Citizens BancShares is more favorable than MetroCity Bankshares.
Profitability
This table compares MetroCity Bankshares and First Citizens BancShares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MetroCity Bankshares | 28.16% | 15.09% | 1.79% |
| First Citizens BancShares | 16.28% | 11.98% | 1.07% |
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 Citizens BancShares
First Citizens BancShares, Inc. operates as the holding company for First-Citizens Bank & Trust Company that provides retail and commercial banking services to individuals, businesses, and professionals. The company's deposit products include checking, savings, money market, and time deposit accounts. Its loan product portfolio comprises commercial construction and mortgage; and commercial and industrial leases, as well as small business administration loans. In addition, the company offers consumer loans, such as residential and revolving mortgage, consumer auto, and other consumer loans. Further, it provides wealth management services, including annuities, brokerage services, and third-party mutual funds, as well as investment management and advisory services. The company provides its products and services through its branch network. First Citizens BancShares, Inc. was founded in 1898 and is headquartered in Raleigh, North Carolina.
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