MetroCity Bankshares (NASDAQ:MCBS – Get Free Report) and Popular (NASDAQ:BPOP – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.
Dividends
MetroCity Bankshares pays an annual dividend of $0.92 per share and has a dividend yield of 2.7%. Popular pays an annual dividend of $2.48 per share and has a dividend yield of 2.6%. MetroCity Bankshares pays out 39.7% of its earnings in the form of a dividend. Popular pays out 33.7% 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.
Valuation and Earnings
This table compares MetroCity Bankshares and Popular”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 | $211.03 million | 4.09 | $51.61 million | $2.32 | 14.68 |
| Popular | $2.75 billion | 2.53 | $541.34 million | $7.36 | 13.08 |
Profitability
This table compares MetroCity Bankshares and Popular’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MetroCity Bankshares | 25.54% | 14.97% | 1.66% |
| Popular | 12.36% | 11.65% | 0.85% |
Risk & Volatility
MetroCity Bankshares has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Popular has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.
Insider and Institutional Ownership
25.3% of MetroCity Bankshares shares are held by institutional investors. Comparatively, 87.3% of Popular shares are held by institutional investors. 27.5% of MetroCity Bankshares shares are held by insiders. Comparatively, 2.1% of Popular shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for MetroCity Bankshares and Popular, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MetroCity Bankshares | 0 | 1 | 0 | 0 | 2.00 |
| Popular | 0 | 2 | 6 | 0 | 2.75 |
MetroCity Bankshares presently has a consensus price target of $34.00, suggesting a potential downside of 0.18%. Popular has a consensus price target of $104.88, suggesting a potential upside of 8.96%. Given Popular’s stronger consensus rating and higher probable upside, analysts plainly believe Popular is more favorable than MetroCity Bankshares.
Summary
Popular beats MetroCity Bankshares on 9 of the 16 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 Popular
Popular, Inc., through its subsidiaries, provides various retail, mortgage, and commercial banking products and services in Puerto Rico, the United States, and the British Virgin Islands. The company provides savings, NOW, money market, and other interest-bearing demand accounts; non-interest bearing demand deposits; and certificates of deposit. It also offers commercial and industrial, commercial multi-family, commercial real estate, and residential mortgage loans; consumer loans, including personal loans, credit cards, automobile loans, home equity lines of credit, and other loans to individual borrowers; construction loans; and lease financing comprising automobile loans/leases. In addition, the company provides investment banking, auto and equipment leasing and financing, broker-dealer, and insurance services; debit cards; and online banking services. Popular, Inc. was founded in 1893 and is headquartered in Hato Rey, Puerto Rico.
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