Analyzing MetroCity Bankshares (NASDAQ:MCBS) and Bogota Financial (NASDAQ:BSBK)

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

Analyst Ratings

This is a summary of current ratings and price targets for MetroCity Bankshares and Bogota Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MetroCity Bankshares	0	1	1	0	2.50
Bogota Financial	0	1	0	0	2.00

MetroCity Bankshares presently has a consensus target price of $33.00, suggesting a potential downside of 8.64%. Given MetroCity Bankshares’ stronger consensus rating and higher possible upside, equities analysts plainly believe MetroCity Bankshares is more favorable than Bogota Financial.

Earnings & Valuation

This table compares MetroCity Bankshares and Bogota Financial”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	$190.11 million	5.47	$68.53 million	$3.05	11.84
Bogota Financial	$18.57 million	6.36	$2.09 million	$0.21	44.05

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

Volatility and Risk

MetroCity Bankshares has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, Bogota Financial has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MetroCity Bankshares	29.44%	15.68%	1.87%
Bogota Financial	6.00%	1.83%	0.29%

Institutional & Insider Ownership

25.3% of MetroCity Bankshares shares are held by institutional investors. Comparatively, 11.6% of Bogota Financial shares are held by institutional investors. 20.2% of MetroCity Bankshares shares are held by company insiders. Comparatively, 3.7% of Bogota Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

MetroCity Bankshares beats Bogota Financial on 12 of the 14 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 Bogota Financial

Bogota Financial Corp. operates as the bank holding company for Bogota Savings Bank that provides banking products and services in the United States. It offers deposit accounts, including demand accounts, savings accounts, money market accounts, and certificate of deposit accounts. The company also provides one-to four-family residential real estate loans, and commercial real estate and multi-family loans; consumer loans, such as home equity loans and lines of credit; commercial and industrial loans; and construction loans; and buys, sells, and holds investment securities. It operates through various offices located in Bogota, Hasbrouck Heights, Newark, Oak Ridge, Parsippany, and Teaneck, as well as through a loan production office in Spring Lake, New Jersey. The company was founded in 1893 and is based in Teaneck, New Jersey. Bogota Financial Corp. operates as a subsidiary of Bogota Financial, MHC.