Financial Contrast: MetroCity Bankshares (NASDAQ:MCBS) versus FB Bancorp (NASDAQ:FBLA)

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

Insider & Institutional Ownership

25.3% of MetroCity Bankshares shares are held by institutional investors. 3.8% of FB Bancorp shares are held by company insiders. Comparatively, 20.2% of MetroCity Bankshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

FB Bancorp has a beta of -0.1, meaning that its stock price is 110% less volatile than the S&P 500. Comparatively, MetroCity Bankshares has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FB Bancorp	-0.36%	0.91%	0.22%
MetroCity Bankshares	28.40%	15.16%	1.82%

Analyst Recommendations

This is a breakdown of recent ratings for FB Bancorp and MetroCity Bankshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FB Bancorp	0	1	0	0	2.00
MetroCity Bankshares	0	1	1	0	2.50

MetroCity Bankshares has a consensus target price of $33.00, indicating a potential downside of 4.38%. Given MetroCity Bankshares’ stronger consensus rating and higher possible upside, analysts plainly believe MetroCity Bankshares is more favorable than FB Bancorp.

Valuation & Earnings

This table compares FB Bancorp and MetroCity Bankshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FB Bancorp	$53.27 million	4.92	$1.25 million	($0.01)	-1,643.00
MetroCity Bankshares	$246.01 million	4.04	$68.53 million	$2.88	11.98

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

Summary

MetroCity Bankshares beats FB Bancorp on 13 of the 14 factors compared between the two stocks.

About FB Bancorp

FB Bancorp Inc. operates as a bank holding company for Fidelity Bank. The Company, through its subsidiaries, provides deposit accounts, mortgages, home equity and consumer loans, credit and debit cards, online and mobile banking, investments and other financial services. FB Bancorp Inc. is based in New Orleans.

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.