MetroCity Bankshares (NASDAQ:MCBS – Get Rating) and Signature Bank (NASDAQ:SBNY – Get Rating) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.
Insider and Institutional Ownership
16.7% of MetroCity Bankshares shares are owned by institutional investors. Comparatively, 98.6% of Signature Bank shares are owned by institutional investors. 27.3% of MetroCity Bankshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
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Profitability
This table compares MetroCity Bankshares and Signature Bank's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
| MetroCity Bankshares | 45.22% | 23.29% | 2.30% |
| Signature Bank | 43.86% | 15.02% | 1.03% |
Dividends
MetroCity Bankshares pays an annual dividend of $0.60 per share and has a dividend yield of 3.0%. Signature Bank pays an annual dividend of $2.24 per share and has a dividend yield of 1.4%. MetroCity Bankshares pays out 22.0% of its earnings in the form of a dividend. Signature Bank pays out 11.9% 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.
Earnings & Valuation
This table compares MetroCity Bankshares and Signature Bank's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
| MetroCity Bankshares | $142.54 million | 3.56 | $61.70 million | $2.73 | 7.30 |
| Signature Bank | $2.31 billion | 4.20 | $918.44 million | $18.78 | 8.52 |
Signature Bank has higher revenue and earnings than MetroCity Bankshares. MetroCity Bankshares is trading at a lower price-to-earnings ratio than Signature Bank, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
MetroCity Bankshares has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, Signature Bank has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and target prices for MetroCity Bankshares and Signature Bank, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
| MetroCity Bankshares | 0 | 0 | 0 | 0 | N/A |
| Signature Bank | 0 | 0 | 13 | 1 | 3.07 |
Signature Bank has a consensus target price of $282.38, suggesting a potential upside of 76.48%. Given Signature Bank's higher possible upside, analysts clearly believe Signature Bank is more favorable than MetroCity Bankshares.
Summary
Signature Bank beats MetroCity Bankshares on 11 of the 16 factors compared between the two stocks.
About MetroCity Bankshares
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MetroCity Bankshares, Inc. operates as the bank holding company for Metro City Bank that provides banking products and services in the United States. It provides consumer and commercial checking accounts, savings accounts, certificates of deposits, money transfers, and other banking services. The company also offers construction and development, commercial real estate, commercial and industrial, single family residential mortgage, small business administration, and other consumer loans; and online banking, treasury management, wire transfer, automated clearing house, and cash management services. It serves small to medium-sized businesses, individuals, businesses, municipalities, and other entities. The company operates 19 full-service branch locations in Alabama, Florida, Georgia, New York, New Jersey, Texas, and Virginia. The company was founded in 2006 and is headquartered in Doraville, Georgia.
About Signature Bank
(Get Rating)
Signature Bank provides commercial banking products and services. It accepts various deposit products, including checking accounts, money market accounts, escrow deposit accounts, cash concentration accounts, certificates of deposit, and other cash management products. The company provides various lending products comprising commercial and industrial loans, real estate loans, and letters of credit. In addition, it offers asset management and investment products; and retirement products, such as individual retirement accounts and administrative services for retirement vehicles. Further, the company provides wealth management services to its high net worth personal clients; and purchases, sells, and assembles small business administration loans and pools. Additionally, it offers individual and group insurance products, including health, life, disability, and long-term care insurance products for business and private clients. As of December 31, 2021, the company operated 37 private client offices located in the metropolitan New York area, Connecticut, California, and North Carolina. Signature Bank was incorporated in 2000 and is headquartered in New York, New York.
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