Head to Head Comparison: MetroCity Bankshares (NASDAQ:MCBS) & Southern First Bancshares (NASDAQ:SFST)

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

Volatility & Risk

MetroCity Bankshares has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Southern First Bancshares has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Institutional & Insider Ownership

25.3% of MetroCity Bankshares shares are owned by institutional investors. Comparatively, 75.0% of Southern First Bancshares shares are owned by institutional investors. 27.5% of MetroCity Bankshares shares are owned by company insiders. Comparatively, 6.9% of Southern First Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MetroCity Bankshares	28.16%	15.72%	1.87%
Southern First Bancshares	15.21%	9.65%	0.79%

Analyst Recommendations

This is a breakdown of recent recommendations for MetroCity Bankshares and Southern First Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MetroCity Bankshares	0	1	1	0	2.50
Southern First Bancshares	0	1	2	0	2.67

MetroCity Bankshares presently has a consensus price target of $33.00, suggesting a potential upside of 0.86%. Southern First Bancshares has a consensus price target of $64.00, suggesting a potential upside of 13.68%. Given Southern First Bancshares’ stronger consensus rating and higher possible upside, analysts clearly believe Southern First Bancshares is more favorable than MetroCity Bankshares.

Valuation and Earnings

This table compares MetroCity Bankshares and Southern First Bancshares”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	$246.01 million	3.81	$68.53 million	$2.77	11.81
Southern First Bancshares	$224.62 million	2.37	$30.37 million	$4.28	13.15

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

Summary

MetroCity Bankshares beats Southern First Bancshares on 8 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 Southern First Bancshares

Southern First Bancshares, Inc. operates as the bank holding company for Southern First Bank that provides commercial, consumer, and mortgage loans to the general public in South Carolina, North Carolina, and Georgia. The company accepts various deposit products that include checking accounts, commercial checking accounts, and savings accounts, as well as other time deposits, including daily money market accounts and long-term certificates of deposit. Its loan portfolio comprises commercial real estate loans; construction real estate loans; commercial business loans for various lines of businesses, such as the manufacturing, service industry, and professional service areas; consumer real estate and home equity loans; and other consumer loans, including secured and unsecured installment loans and revolving lines of credit. In addition, the company provides other bank services, such as internet banking, cash management, safe deposit boxes, direct deposit, automatic drafts, bill payment, and mobile banking services. Southern First Bancshares, Inc. was incorporated in 1999 and is headquartered in Greenville, South Carolina.