Critical Comparison: MetroCity Bankshares (NASDAQ:MCBS) versus First Us Bancsh (NASDAQ:FUSB)

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

Valuation and Earnings

This table compares First Us Bancsh and MetroCity Bankshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Us Bancsh	$62.99 million	1.40	$5.99 million	$1.00	15.28
MetroCity Bankshares	$246.01 million	2.91	$68.71 million	$2.63	10.68

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

Profitability

This table compares First Us Bancsh and MetroCity Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Us Bancsh	9.51%	5.85%	0.53%
MetroCity Bankshares	27.93%	15.73%	1.89%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for First Us Bancsh and MetroCity Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Us Bancsh	0	1	0	0	2.00
MetroCity Bankshares	0	1	1	0	2.50

MetroCity Bankshares has a consensus target price of $31.00, indicating a potential upside of 10.32%. Given MetroCity Bankshares’ stronger consensus rating and higher possible upside, analysts clearly believe MetroCity Bankshares is more favorable than First Us Bancsh.

Volatility & Risk

First Us Bancsh has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, MetroCity Bankshares has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Institutional and Insider Ownership

18.7% of First Us Bancsh shares are held by institutional investors. Comparatively, 25.3% of MetroCity Bankshares shares are held by institutional investors. 11.2% of First Us Bancsh shares are held by insiders. Comparatively, 27.5% of MetroCity Bankshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

First Us Bancsh pays an annual dividend of $0.28 per share and has a dividend yield of 1.8%. MetroCity Bankshares pays an annual dividend of $1.00 per share and has a dividend yield of 3.6%. First Us Bancsh pays out 28.0% of its earnings in the form of a dividend. MetroCity Bankshares pays out 38.0% 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 Us Bancsh has increased its dividend for 3 consecutive years.

Summary

MetroCity Bankshares beats First Us Bancsh on 14 of the 17 factors compared between the two stocks.

About First Us Bancsh

First US Bancshares, Inc. operates as the bank holding company for First US Bank that provides commercial banking products and services. The company offers non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. Its loan products include commercial construction, land, and land development loans, including residential housing projects, commercial and industrial development, and for purchase and improvement of raw land for agricultural production; mortgage loans on one-to-four family and multi-family residential properties; real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers, and other commercial properties; commercial and industrial loans and leases; and secured and unsecured personal loans, including automobile loans, loans for household and personal purposes, and other direct consumer installment loans. The company also provides loans secured by collateral in form of personal property items. In addition, it provides letters of credit; and safe deposit box and remote deposit capture services. The company serves small-and medium-sized businesses, property managers, business executives, professionals, and other individuals. The company was formerly known as United Security Bancshares, Inc. and changed its name to First US Bancshares, Inc. in October 2016. First US Bancshares, Inc. was founded in 1952 and is headquartered in Birmingham, Alabama.

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.