MetroCity Bankshares (NASDAQ:MCBS) versus FinWise Bancorp (NASDAQ:FINW) Critical Comparison

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MetroCity Bankshares	23.26%	13.30%	1.44%
FinWise Bancorp	20.39%	11.69%	3.36%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for MetroCity Bankshares and FinWise Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MetroCity Bankshares	0	1	0	0	2.00
FinWise Bancorp	0	0	1	0	3.00

MetroCity Bankshares presently has a consensus price target of $28.00, suggesting a potential upside of 17.40%. FinWise Bancorp has a consensus price target of $17.00, suggesting a potential upside of 60.38%. Given FinWise Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe FinWise Bancorp is more favorable than MetroCity Bankshares.

Earnings & Valuation

This table compares MetroCity Bankshares and FinWise Bancorp’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MetroCity Bankshares	$211.03 million	2.85	$51.61 million	$1.97	12.11
FinWise Bancorp	$85.61 million	1.59	$17.46 million	$1.33	7.97

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

Volatility & Risk

MetroCity Bankshares has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, FinWise Bancorp has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Insider & Institutional Ownership

25.3% of MetroCity Bankshares shares are owned by institutional investors. Comparatively, 35.4% of FinWise Bancorp shares are owned by institutional investors. 27.5% of MetroCity Bankshares shares are owned by insiders. Comparatively, 20.8% of FinWise Bancorp 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.

Summary

MetroCity Bankshares beats FinWise Bancorp 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 FinWise Bancorp

FinWise Bancorp operates as the bank holding company for FinWise Bank that provides various banking products and services to individual and corporate customers in the United States. The company offers various deposit products, including interest and noninterest bearing demand, NOW, money market, and checking and savings accounts, as well as time deposits and certificates of deposits. It also provides loans, including consumer, small business administration, commercial, commercial real estate, and residential real estate loans. In addition, the company offers debit cards, remote deposit capture, online banking, mobile banking, and direct deposit services; and business accounts and cash management services, such as business checking and savings accounts and treasury services. FinWise Bancorp was founded in 1999 and is headquartered in Murray, Utah.