Reviewing First Citizens BancShares (NASDAQ:FCNCA) & MetroCity Bankshares (NASDAQ:MCBS)

First Citizens BancShares (NASDAQ:FCNCA) and MetroCity Bankshares (NASDAQ:MCBS) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Risk and Volatility

First Citizens BancShares has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, MetroCity Bankshares has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.

Insider & Institutional Ownership

78.0% of First Citizens BancShares shares are owned by institutional investors. Comparatively, 25.3% of MetroCity Bankshares shares are owned by institutional investors. 14.6% of First Citizens BancShares shares are owned by insiders. Comparatively, 27.5% of MetroCity Bankshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

First Citizens BancShares pays an annual dividend of $8.40 per share and has a dividend yield of 0.4%. MetroCity Bankshares pays an annual dividend of $1.16 per share and has a dividend yield of 3.2%. First Citizens BancShares pays out 4.8% of its earnings in the form of a dividend. MetroCity Bankshares pays out 41.9% 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. First Citizens BancShares has raised its dividend for 8 consecutive years.

Analyst Ratings

This is a breakdown of current recommendations and price targets for First Citizens BancShares and MetroCity Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Citizens BancShares	0	11	2	1	2.29
MetroCity Bankshares	0	1	1	0	2.50

First Citizens BancShares presently has a consensus target price of $2,258.85, indicating a potential upside of 4.54%. MetroCity Bankshares has a consensus target price of $33.00, indicating a potential downside of 9.76%. Given First Citizens BancShares’ higher possible upside, equities research analysts plainly believe First Citizens BancShares is more favorable than MetroCity Bankshares.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Citizens BancShares	16.28%	11.98%	1.07%
MetroCity Bankshares	28.16%	15.09%	1.79%

Valuation & Earnings

This table compares First Citizens BancShares and MetroCity Bankshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Citizens BancShares	$14.51 billion	1.73	$2.21 billion	$173.88	12.43
MetroCity Bankshares	$168.25 million	6.23	$68.53 million	$2.77	13.20

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

About First Citizens BancShares

First Citizens BancShares, Inc. operates as the holding company for First-Citizens Bank & Trust Company that provides retail and commercial banking services to individuals, businesses, and professionals. The company's deposit products include checking, savings, money market, and time deposit accounts. Its loan product portfolio comprises commercial construction and mortgage; and commercial and industrial leases, as well as small business administration loans. In addition, the company offers consumer loans, such as residential and revolving mortgage, consumer auto, and other consumer loans. Further, it provides wealth management services, including annuities, brokerage services, and third-party mutual funds, as well as investment management and advisory services. The company provides its products and services through its branch network. First Citizens BancShares, Inc. was founded in 1898 and is headquartered in Raleigh, North Carolina.

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.