Head-To-Head Survey: MetroCity Bankshares (NASDAQ:MCBS) and Triumph Financial (NASDAQ:TFIN)

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

Analyst Recommendations

This is a breakdown of recent recommendations for MetroCity Bankshares and Triumph Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MetroCity Bankshares	0	1	0	0	2.00
Triumph Financial	1	4	0	0	1.80

MetroCity Bankshares currently has a consensus price target of $34.00, suggesting a potential upside of 25.23%. Triumph Financial has a consensus price target of $68.20, suggesting a potential upside of 19.00%. Given MetroCity Bankshares’ stronger consensus rating and higher possible upside, equities research analysts clearly believe MetroCity Bankshares is more favorable than Triumph Financial.

Valuation & Earnings

This table compares MetroCity Bankshares and Triumph 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	$143.02 million	4.82	$64.50 million	$2.57	10.56
Triumph Financial	$415.91 million	3.23	$16.09 million	$0.37	154.89

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

Insider & Institutional Ownership

25.3% of MetroCity Bankshares shares are owned by institutional investors. Comparatively, 91.1% of Triumph Financial shares are owned by institutional investors. 27.5% of MetroCity Bankshares shares are owned by company insiders. Comparatively, 5.6% of Triumph Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

MetroCity Bankshares has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, Triumph Financial has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MetroCity Bankshares	27.33%	15.98%	1.79%
Triumph Financial	3.30%	1.93%	0.28%

Summary

MetroCity Bankshares beats Triumph Financial on 9 of the 13 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 Triumph Financial

Triumph Financial, Inc., a financial holding company, provides various payments, factoring, and banking services in the United States. It operates through Banking, Factoring, and Payments segments. The company offers deposit products, including checking, savings, money market and certificates of deposit; and loan products, such as commercial real estate, land, commercial construction and land development, residential real estate, commercial agriculture, and consumer loans, as well as commercial and industrial loans, equipment loans, asset-based loans, business loans for working capital and operational purposes, and liquid credit loans. It also provides electronic banking services, debit cards, insurance brokerage services, mortgage warehouse facilities, and transportation factoring services, as well as payments services offered through TriumphPay platform, a payments network for the over-the-road trucking industry. The company was formerly known as Triumph Bancorp, Inc. and changed its name to Triumph Financial Inc. in December 2022. Triumph Financial Inc. was incorporated in 2003 and is headquartered in Dallas, Texas.